American Gilsonite amended pre-packaged reorganization plan confirmed

By Caroline Salls

Pittsburgh, Dec. 12 – American Gilsonite Co., Inc.’s first amended joint pre-packaged plan of reorganization was confirmed Monday by the U.S. Bankruptcy Court for the District of Delaware.

The court also approved the disclosure statement for the plan in Monday’s order.

Under the pre-packaged plan, holders of general unsecured claims, including trade vendors, employees and lease counterparties, will be fully paid because of existing obligations in the normal course of business. The company’s revolving lenders will also be paid in full.

Holders of American Gilsonite Holding interests will receive 2% of the new equity interests in the reorganized company.

Supporting noteholders agreed to exchange their claims for reorganized equity and subordinated debt.

The pre-packaged plan will transition ownership to the company’s second-lien noteholders.

The second-lien notes will be canceled and, in exchange, holders will receive 98% of the new equity of the reorganized company and $100 million in subordinated notes.

American Gilsonite is a Houston-based miner and processor of uintaite, a unique mineral which the company markets under its trademark name Gilsonite. The company filed for bankruptcy on Oct. 24 under Chapter 11 case number 16-12316.

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