Castle Holdco 4 board committee likes proposed scheme of arrangement

By Caroline Salls

Pittsburgh, Feb. 23 - Castle Holdco 4 Ltd. said an independent committee of its board of directors has completed its review of a proposed scheme of arrangement and agreed it would create a stable and sustainable capital structure for the company to address significant market uncertainty, according to a news release.

As previously reported, the scheme would provide Countrywide plc with £75 million of fresh equity capital and would result in a substantial reduction of the company's outstanding debt to £175 million, including the repayment in full of Castle's revolving credit facility and related hedging liabilities.

The scheme was proposed by a group of holders of senior secured notes and senior notes, which has agreed to support the scheme and to contribute the additional equity capital.

Specifically, holders of about 57% of the total outstanding senior secured notes and 54% of the total outstanding senior notes have indicated support for the scheme.

Following completion of its review of the scheme, Castle said it expects the scheme to be filed with the relevant court in March and completed during the second quarter.

Castle acquired Countrywide, a Witham, England-based real estate company, in May 2007.

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