U.S. Concrete's disclosure statement gets bankruptcy court approval

By Lisa Kerner

Charlotte, N.C., June 3 - U.S. Concrete, Inc.'s disclosure statement was approved by the U.S. Bankruptcy Court for the District of Delaware at a hearing on Thursday, according to an attorney close to the case.

As previously reported, in April U.S. Concrete made a pre-packaged Chapter 11 bankruptcy filing to implement an agreement reached with a substantial majority of its bondholders on the terms of a comprehensive debt restructuring.

The company said the proposed plan of reorganization will reduce its subordinated debt by about $272 million and significantly strengthen its balance sheet.

Prospect News previously reported that under the proposed plan:

• Holders of the company's 8 3/8% senior subordinated notes due 2014 would exchange their notes for the equity in the reorganized company;

• Existing shareholders would receive warrants to acquire 15% of the equity of the reorganized company, at a strike price where the equity value of the reorganized company is worth $335 million;

• The company's debtor-in-possession facility will either be converted into an exit facility or be paid in full in cash;

• General unsecured claims will either be paid in full in cash, be paid in the ordinary course of business or be left otherwise rendered unimpaired; and

• Holders of intercompany interests and intercompany claims will receive no distributions.

U.S. Concrete is a Houston-based cement manufacturer. Its Chapter 11 case number is 10-11407.

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