Integrated Electrical noteholders object to lack of plan treatment information in disclosure statement

By Caroline Salls

Pittsburgh, March 8 - Integrated Electrical Services, Inc.'s senior convertible noteholders objected to the disclosure statement for the company's plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The objection was filed by Marathon Convertible Master Fund, Ltd., Marathon Special Opportunities Master Fund, Ltd. and Amulet Ltd., holders of the company's series A 6.5% senior convertible notes due 2014.

According to the objection, the disclosure statement does not give enough information on the proposed treatment of the noteholders' claims under the plan.

"Rather, the disclosure statement describes three possible alternative treatments, which may be afforded to the noteholders, and which may materially alter the treatment of their claims even after the confirmation of the plan," the objection said.

As a result, the noteholders said the statement does not provide adequate information for a creditor to make an informed judgment when voting on the plan.

Integrated Electrical Services, a Houston-based provider of electrical services to the commercial, industrial and residential markets, filed for bankruptcy on Feb. 14. Its Chapter 11 case number is 06-30602.

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