Powermate disclosure statement approved; confirmation hearing Oct. 16

By Caroline Salls

Pittsburgh, Sept. 4 - Powermate Holding Corp. received court approval of the disclosure statement for its liquidating plan, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Oct. 16.

A plan administrator will be appointed on the effective date to wind up the company's affairs, liquidate any remaining assets, enforce and prosecute claims and make plan distributions.

The company said it expects to have $7 million in cash and a book value of $1 million in uncollected accounts receivable on the plan effective date.

Treatment of creditors will include:

• Holders of administrative claims, priority tax claims and priority claims will be paid in full in cash;

• Holders of secured claims will receive the collateral securing their claims after the payment of $4.7 million from a pre-bankruptcy secured claims bucket to holders of unsecured claims;

• Holders of unsecured claims will receive a share of $4.7 million from the secured claims bucket and a share of any further cash distributions; and

• Holders of equity interests will receive no distribution.

Powermate, an Aurora, Ill.-based manufacturer of portable and standby electric generators, air compressors, air tools, pressure washers and accessories, filed for bankruptcy on March 17, 2008. Its Chapter 11 case number is 08-10498.

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