International Knife to restructure debt through prepack Chapter 11

By Peter Heap

New York, Sept. 24 - International Knife & Saw, Inc. said it plans to restructure its debt through a prepackaged Chapter 11 bankruptcy filing.

Under the proposed plan, the Wilmington, Del. manufacturer of industrial machine knives and saws will convert its senior subordinated debt into common stock of the reorganized company.

International Knife said it has already signed an agreement with holders of 70% to implement the plan.

As a result, the company said it anticipates rapid progress through court. The filing, by International Knife and its parent IKS Corp., was with the U.S. Bankruptcy Court in Delaware.

The plan will eliminate "substantially all" the existing debt and provide up to $10 million of new financing, to be provided by existing creditors. Operations will be maintained without disruption.

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