Charys agrees to settle some notes debt through subsidiary share transfer

By Caroline Salls

Pittsburgh, Feb. 18 - Charys Holding Co. requested court approval of a notes claim settlement with noteholder collateral agent Imperium Advisors, LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, the company's June 2008 cash collateral agreement granted Imperium an $8.3 million secured claim against Charys. Under that agreement, the notes were due on the earlier of Nov. 28 and the effective date of a plan of reorganization.

Charys said it has made substantial payments on the notes and amended the payment agreement so that the noteholders now hold a $1.66 million secured claim against the company, payable on the earlier of the plan effective date and March 5.

In order to settle a portion of the notes debt, the company said it has agreed to transfer all of the outstanding shares of Charys wholly owned non-debtor subsidiary Viasys Network Services to Imperium.

The company said the share transfer will settle $160,610 of the amount owed on the notes.

Charys is an Atlanta-based infrastructure services company that filed for bankruptcy on Feb. 14, 2008. Its Chapter 11 case number is 08-10289.

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