Covanta lists recovery rates in filing

By Jeff Pines

Washington, Jan. 12 - Covanta filed its second disclosure statement concerning its joint plan of reorganization and liquidating the debtors' second joint plan of liquidation. The filing contains new information on allowed claims and projected recovery rates.

Subclass 3A creditors, which are secured and estimated to have claims of between $411 million and $419 million, can expect to recover 67.7%-72.3%.

Subclass 3B creditors, those holding the 9¼% debentures, can expect to recover 67.7%-72.3% before giving effect to the provisions of the 9¼% settlement. The estimated recovery after giving effect to the settlement is 59.3%-63.3%. The estimate recovery rate for bondholders who reject the settlement is 2%-6.4%. An estimated $105 million of these claims are outstanding.

Class 6 claims, or unsecured claims against the parent and holding company are estimated to range from $125 - $400 million. The estimated recovery range depends upon the 9¼% settlement distribution. Before it, they can expect to recover 2%-6.4%. After the settlement, their recovery could range from 4.2%-14%.

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