Holley Performance's plan of reorganization gets court confirmation

By Lisa Kerner

Charlotte, N.C., June 7 - Holley Performance Products Inc.'s plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of Delaware on Monday, according to an attorney close to the case.

The company filed its proposed plan of reorganization and related disclosure statement on March 10.

As previously reported, creditor treatment under the plan includes:

• Holders of $20.3 million of secured credit agreement claims will be paid in full in cash;

• Holders of $50 million of secured note claims will receive their share of common stock in the reorganized company or the expected value of the shares in cash for a 61% recovery;

• Holders of other secured claims will have their claims fully reinstated;

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

• Holders of $11 million of general unsecured claims, as well as holders of subordinated securities claims and holders of equity interests will receive no recovery; and

• Equity interests in Holley's subsidiaries will remain effective and outstanding.

Holley, a Bowling Green, Ky.-based maker of high-performance carburetors and other automotive engine equipment, filed for bankruptcy on Sept. 28, 2009. Its Chapter 11 case number is 09-13333.

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