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Real Industry files plan of reorganization; some shares to be sold
By Caroline Salls
Pittsburgh, March 2 – Real Industry, Inc. submitted its plan of reorganization and related disclosure statement on Thursday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.
Real Industry said in the disclosure statement that the plan will ensure that it has the working capital necessary to continue to implement its business strategy, reorganize and exit from bankruptcy, as well as to fund its post-emergence operations to seek future acquisitions.
Under the plan, all series B preferred interests and common interests will be cancelled, and holders of those interests will together receive 51% of the new common stock in the reorganized company.
Preferred stockholders will also receive a share of $2 million in cash.
The remaining 49% of the new common stock will be purchased by 210/RELY Partners, LP and Goldman Sachs Asset Management, LP and/or its designated affiliates for a purchase price of $17.5 million.
Administrative claims and priority non-tax claims will be paid in full in cash.
Priority claims will be paid in cash over a five-year period.
The unpaid portion of debtor-in-possession financing claims will be applied to the purchase consideration.
Secured claims and general unsecured claims will either be paid in full in cash or be reinstated.
Holders of convenience class common interests will receive $0.24 per common interest.
Holders of warrant/option interests will receive no distribution.
The disclosure statement hearing is scheduled for March 29.
The holding company is based in Sherman Oaks, Calif. Real Industry filed bankruptcy on Nov. 17, 2017 under Chapter 11 case number 17-12464.
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