Ameriforge Group plan confirmed, $70 million DIP facility approved

By Caroline Salls

Pittsburgh, May 23 – Ameriforge Group Inc.’s pre-packaged plan of reorganization was confirmed Monday by the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company entered into a restructuring support agreement with majority support from its senior lenders and solicited votes for a reorganization plan that will substantially reduce its debt service obligations and position it for long-term success.

Under the plan, holders of debtor-in-possession financing claims will receive a share of exit term loans, subject to the rights of eligible participants to exercise a subscription option.

Holders of first-lien claims will receive a share of 95.5% of the new common stock in the reorganized company, subject to dilution on account of a management incentive plan and warrant equity.

Holders of second-lien claims will receive a share of 4.5% of the new common stock, subject to dilution, as well as warrants.

General unsecured claims will remain unimpaired and be paid in the ordinary course of business.

Interests in the holding company will be canceled.

Intercompany claims and interests will be reinstated or canceled.

Administrative claims, priority tax claims, other secured claims and other priority claims will be paid in full in cash, reinstated or otherwise rendered unimpaired.

In addition, Ameriforge received final court approval to obtain $70 million in debtor-in-possession financing.

Deutsche Bank AG New York Branch is the administrative and collateral agent.

The facility will mature on the earliest of six months after the bankruptcy filing date, the effective date of a Chapter 11 plan and the date the loans become due and payable.

Interest will accrue at one-month Libor plus 800 basis points, with a 1% Libor floor.

The DIP lenders have also agreed to provide the company with $70 million in exit financing.

Ameriforge is a Houston-based manufacturer of highly engineered products, subassemblies and integrated systems for the oil and gas, midstream, downstream, power generation, aerospace, transportation and industrial markets. The company filed bankruptcy on April 30 under Chapter 11 case number 17-32660.

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