International Wire reorganization plan calls for noteholders to get new 10% notes and stock

By Jeff Pines

Washington, May 11 - International Wire Group Inc. noteholders will get a share of $75 million of new 10% senior unsecured notes and 9.6 million common shares of the reorganized company in return for their claims, according to the company's reorganization plan. The notes will not be redeemable for three years.

Before it filed for Chapter 11, the company had $300 million of 11¾% senior subordinated notes and $5 million in 14% senior subordinated notes. It used its debtor-in-possession facility to repay $82 million in secured notes.

International Wire filed its disclosure statement and reorganization plan with the U.S. Bankruptcy Court for the Southern District of New York Monday.

The 9.6 million shares represents 96% of the reorganized company's common equity before dilution. The remaining 400,000 shares will go to existing shareholders.

Only the noteholders and the shareholders will vote on the plan.

The disclosure statement did not provide an estimated recovery.

The reorganization plan also calls for the company to obtain a $140 million exit facility.

A hearing to approve the disclosure statement is scheduled for June 21.

International Wire, a St. Louis-based wire manufacturer, filed for bankruptcy on March 24. Its Chapter 11 case number is 04-11991.

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