Ampex files amended plan, eliminates separate trade claim recovery, adds cash option to unsecured claims

By Jennifer Lanning Drey

Portland, Ore., June 9 - Ampex Corp. filed a third-amended plan of reorganization Monday that eliminates separate treatment for holders of unsecured trade claims, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the prior plan, holders of trade unsecured claims were separately identified as being slated to recover 100% in cash.

The new plan also amends creditor treatment for holders of $51.6 million of other unsecured claims. Under the amended plan, these claim holders will receive their share of the unsecured claim distribution or, provided they vote in favor of the plan, a full cash recovery.

The prior plan stated that holders of these claims would receive their share of the unsecured claim distribution; provided that distributions on behalf of the Hillside unsecured deficiency claim be made on the plan effective date and holders of other unsecured claims cannot receive their share of the distribution until they sign the new stockholders agreement.

Creditor treatment

Creditor treatment under the amended plan includes:

• Holders of senior secured notes, with an estimated $6.9 million claim, will receive their share of the senior secured note claim distribution, including cash and new notes;

• Holders of other secured claims will recover 100% in cash;

• Holders of $11 million in Hillside secured claims will receive $10.5 million in tranche A loan obligations to be incurred by reorganized Ampex;

• Holders of other unsecured claims, estimated at $51.6 million, will receive their share of the unsecured claim distribution; provided that they vote in favor of the plan;

• Holders of existing common stock are not scheduled to receive any distribution under the plan; provided, however, that if they agree not to object to confirmation of the plan, this group will receive the right to receive a distribution; and

• Holders of existing securities law claims and other existing interests will receive no distribution under the plan.

Ampex, a Redwood City, Calif., technology licensing company, made a pre-packaged bankruptcy filing on March 30 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-11094.

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