AMF reorganization plan approved, bank lenders to receive 92.5% equity, notes, cash

New York, Feb. 1 - AMF Bowling Worldwide, Inc. said its proposed plan of reorganization was approved Friday by the U.S. Bankruptcy Court for the Eastern District of Virginia following a revision earlier in the week.

The Richmond, Va. bowling company said the revised plan was supported by all major creditor groups, including the senior secured lenders and the unsecured creditors committee.

AMF expects the plan will become effective and the company emerge from Chapter 11 in the next four to six weeks. It filed for reorganization under Chapter 11 on July 2, 2001.

A commitment for $350 million of exit financing has been obtained from Deutsche Banc Alex Brown Inc. and its affiliate Bankers Trust Co. At closing, AMF expects to draw $300 million with $50 million available under a revolving credit facility for working capital.

Under terms of the restructuring, AMF said senior secured lenders will recover their $620 million in claims through 92.5% of the reorganized company's common stock, $150 million in subordinated notes, and cash.

Unsecured creditors will receive 7.5% of the reorganized company's stock and warrants to purchase additional shares.

AMF said its parent, AMF Bowling, Inc., which is the subject of a separate Chapter 11 case, will have no assets to distribute to its common stockholders, and little, if any, assets to distribute to its creditors.

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