Ameriforge Group pre-packaged Chapter 11 plan effective as of June 8

By Caroline Salls

Pittsburgh, June 9 – Ameriforge Group Inc.’s pre-packaged plan of reorganization took effect on Thursday, according to a notice filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan was confirmed on May 22.

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 to be provided by the company’s debtor-in-possession lenders, 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.

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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