iQor files pre-packaged plan, requests Oct. 14 confirmation hearing

By Caroline Salls

Pittsburgh, Sept. 11 – iQor Holdings Inc. filed a pre-packaged plan of reorganization and related disclosure statement Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, iQor and its U.S. subsidiaries filed bankruptcy Thursday to implement an agreement between a majority of its secured lenders to recapitalize its funded debt.

iQor said its pre-packaged plan of reorganization has been approved by holders of 97% of its first-lien notes and 84% of its second-lien notes.

The company said the plan will deleverage its balance sheet by $513 million and refinance the remainder of its funded debt with $155 million to $177.5 million in exit financing, which will also fund iQor’s business upon emergence from Chapter 11.

The plan leaves general unsecured creditors unimpaired.

A substantial portion of the company’s debtor-in-possession financing will be used to refinance outstanding obligations under a pre-bankruptcy priority term loan facility and receivables facility.

Holders of first-lien term loan claims will receive a share of 95.75% of the common stock of reorganized iQor, subject to dilution on account of a management incentive plan and new term loans.

Holders of second-lien term loan claims will receive a share of 4.25% of the new common stock, subject to dilution by the management incentive plan.

Series SS and series A preferred interests and existing common interests will be cancelled without a distribution to holders.

The company is asking the court to schedule a combined plan confirmation and disclosure statement approval hearing for Oct. 14.

iQor is a St. Petersburg, Fla.-based provider of business process outsourcing services. The Chapter 11 case number is 20-34500.

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