Hawkeye Renewables' plan confirmed, disclosure statement approved

By Lisa Kerner

Charlotte, N.C., June 3 - Hawkeye Renewables, LLC's plan of reorganization was confirmed and its disclosure statement was approved, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As reported in May, Hawkeye filed an amended plan of reorganization to eliminate plan vote conditions that had been attached to the proposed distribution for holders of second-lien credit agreement claims.

Creditor treatment will include:

• Holders of first-lien credit agreement claims will receive their share of $25 million in new secured term loans and new class A, B and C units. The class B and C units will be transferred to holders of second-lien claims;

• Holders of second-lien credit agreement claims will receive a share of new class B units and new class C units;

• Holders of general unsecured claims and equity interests will receive no distribution;

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

• Holders of other secured claims will either be paid in full in cash, receive the collateral securing the claim or have their claims reinstated.

Hawkeye Renewables is an Iowa Falls, Iowa, manufacturer of alcohol-based fuel derived from corn. It filed for bankruptcy on Dec. 21. The Chapter 11 case number is 09-14461.

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