Former Indalex's trustee gets court OK of U.S. Bank proceeds agreement

By Caroline Salls

Pittsburgh, June 9 - IH 1, Inc.'s Chapter 7 trustee George L. Miller received court approval of a proceeds agreement between the former Indalex Finance Corp. and U.S. Bank, NA, indenture trustee for the holders of the company's 11½% second-priority senior notes due 2014, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the agreement, the trustee will not object to the allowance of U.S. Bank's roughly $213 million claim.

In addition, U.S. Bank will receive proceeds from a Sun lawsuit, including 50% of the first $10 million in net proceeds, 40% of the next $10 million in net proceeds and 30% of any net proceeds thereafter.

According to the motion, Sun Indalex Finance LLC filed a $34.6 million secured claim against IH 1, while Sun Indalex LLC filed a $62.45 million claim.

The indenture trustee filed an adversary complaint against Sun Capital Partners, Sun Indalex, Sun Indalex Finance and other parties in July 2010.

IH 1 was formerly Indalex, a Chicago-based aluminum extruder and producer of soft alloy extrusion products, which filed for bankruptcy on March 20, 2009. Its Chapter 11 case number is 09-10982.

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