Keystone says 85% of noteholders support restructuring plan

New York, Jan. 30 - Keystone Consolidated Industries, Inc. said holders of 85% of the principal amount of its $100 million 9 5/8% senior secured notes have committed to support a plan for an out-of-court restructuring of its debt.

The plan would include an offer for holders of the senior secured notes to exchange them for either a discounted cash amount and common stock, or new preferred stock and subordinated debt, or subordinated unsecured debt. The total cash available would be subject to a limit.

The Dallas fencing and construction products company said it will be distributing an offer document to all noteholders.

The exchange will be subject to the success of efforts to renew or replace the company's existing revolving credit facilities, securing new term financing, reaching agreement on a proposed subordinated loan from the State of Illinois and satisfactory restructuring of other obligations of the company, as well as attaining a specified level of participation in the exchange offer, Keystone said.

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