Formica files reorganization plan

New York, Sept. 23 - Formica Corp. filed its plan of reorganization and disclosure statement with the U.S. Bankruptcy Court for the Southern District of New York.

Under the plan, general unsecured creditors will receive $12.75 million in cash and $8.675 million in new subordinated secured notes.

Senior secured lenders will receive $173 million in cash and provide $130 million in new financing.

The court has already approved an agreement under which an investment group sponsored by Cerberus Capital Management LP and Oaktree Capital Management LLC will invest $175 million in cash in Formica and its subsidiaries.

Formica will have $160 million of debt after the reorganization, down from $540 million at the time of filing for Chapter 11.

The Warren, N.J. manufacturer of decorative surfacing materials said the plan reflects a reorganization agreed with its senior secured lenders and the official committee of unsecured creditors.

The plan is subject to creditor approval and confirmation by the bankruptcy court.

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