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MACH Gen Chapter 11 plan of reorganization in effect as of April 28
By Kali Hays
New York, April 28 - MACH Gen, LLC's Chapter 11 plan of reorganization is in effect as of April 28, according to a Monday notice with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, the company's plan was confirmed April 11.
Upon filing, the company said the plan will significantly reduce its long-term debt by about $1 billion, improve its overall financial condition and creditworthiness and ensure its continued operations as a going concern.
Plan terms
Under the terms of the plan:
• All of the second-lien lenders' claims will be exchanged for 93.5% of the equity interests in reorganized MACH Gen;
• First-lien revolver claims out of a total loan commitment of $200 million will be exchanged for obligations under, or paid with the proceeds of, a new first-lien revolver;
• First-lien term loan claims will be exchanged for obligations under, or paid with the proceeds of, a new first-lien term loan;
• Existing MACH Gen interests will be exchanged for 6.5% of the new common units; and
• All other claims, including all general unsecured claims, will be paid in full or otherwise rendered unimpaired.
In order to fund the distributions, the company said reorganized MACH Gen will enter into new first-lien facilities with Beal Bank USA, including a $483 million term loan and a $200 million revolver.
In addition, MACH Gen or a newly formed holding company will issue 10 million common units representing 100% of the membership interests.
MACH Gen is a Silver Spring, Md.-based portfolio of power-generation assets. The Chapter 11 case number is 14-10461.
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