Canal plan OK'd by two voting classes; subordinated noteholders reject

By Caroline Salls

Pittsburgh, March 28 - Canal Corp.'s plan of liquidation was accepted by a majority of voting creditors in two of three classes, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The voting holders of subordinated notes claims voted to reject the plan.

Specifically, seven holders, or 30.43% in number, of $6.45 million, or 11.81% in amount, of subordinated notes claims voted to accept the plan, while 16 holders, or 69.57% in number, of $48.17 million, or 88.19% in amount, of these claims voted to reject it.

In addition, 192 holders, or 95.05% in number, of $26.05 million, or 95.68% in amount, of other general unsecured claims voted to accept the plan, while 10 holders, or 4.95% in number, of $1.18 million, or 4.32% in amount, of these claims voted to reject it.

Meanwhile, 193 holders, or 93.69% in number, of $20.45 million, or 96.74% in amount, of revenue bond claims voted to accept the plan, while 13 holders, or 6.31% in number, of $690,000, or 3.26% in amount, of these claims voted to reject it.

The plan confirmation hearing is scheduled for March 29.

Canal was formerly Chesapeake Corp., a Richmond, Va.-based manufacturer and supplier of specialty paperboard packaging products. The company filed for bankruptcy on Dec. 29, 2008. Its Chapter 11 case number is 08-36642.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.