Amcast files third amended reorganization plan, adjusting exit facility term loan commitments

By Caroline Salls

Pittsburgh, July 28 - Amcast Industrial Corp. filed its third amended plan of reorganization Wednesday with the U.S. Bankruptcy Court for the Southern District of Ohio, adjusting the term loan amounts for the company's $84 million exit facility.

The exit facility will include a $20 million revolving credit facility, a $13 million term loan A and a $51 million term loan B.

The original exit facility figures called for a $37 million term note A and a $27 million term note B.

The proceeds of the exit facility will be used to repay Amcast's debtor-in-possession facility and for general working capital purposes.

Interest on the revolver and term loan A will be Libor plus 375 basis points. Interest on the term loan B will be 12%.

Maturity will be the earlier of Oct. 30, 2009 for the revolver and term loan A and April 30, 2010 for the term loan B, acceleration in the event of default and the termination date of the sale of all the company's assets.

Security will be all of Amcast's property.

Under the plan, the reorganization value is estimated to be between $62.5 million and $67.5 million. The company will issue 1,000 shares of new common stock to holders of pre-bankruptcy secured lender claims under the plan.

Treatment of creditors under the plan will include:

*Holders of $26.1 million in estimated allowed claims will receive 100% recovery in cash or other agreed treatment. These claims include administrative claims, professional fee claims, cure payments for executory contracts and DIP facility claims;

*Holders of $108.35 million in pre-bankruptcy secured lender claims will receive 50% recovery through the $13 million term note A, minus the funded amount of the DIP facility on the plan effective date; the $51 million term note B; and 100% of new Amcast's common stock;

*Holders of $40 million to $60 million in general unsecured claims will receive 3% to 6% recovery through the proceeds of the creditor assets, which include $1.75 million in cash and some non-cash assets; and

*Holders of Amcast equity interests, including old common stock and warrants, will get nothing.

A hearing on confirmation of the second amended plan was scheduled for July 28.

Amcast, a Dayton, Ohio, manufacturer of plumbing and auto components, filed for Chapter 11 on Nov. 30. Its case number is 04-40504.

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