Maronda Homes files plan; lenders have exit loan participation option

By Caroline Salls

Pittsburgh, Aug. 12 - Maronda Homes, Inc. filed its plan of reorganization and related disclosure statement Friday with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

According to the disclosure statement, the company will emerge from bankruptcy and continue its business with a revised credit agreement in place with most or all of its lenders.

Under the plan, all classes of creditors will be paid in full.

Pre-bankruptcy secured lenders will be paid in full, subject to a $12 million offset amount. However, the pre-bankruptcy credit agreement payment date will be extended under the plan to Sept. 30, 2014 from March 12, 2012.

The company said the lenders will also have the option to participate in exit financing provided that, as a condition to the debtors' acceptance of the plan, a majority in number and at least 75% in amount of the lenders must agree to participate in the exit financing.

Lenders electing to participate in the exit financing must agree that their participation in and share of the commitment will be adjusted upward to encompass the share of any lender that does not elect to participate in the exit financing.

In exchange, the share of the offset amount will be reduced to zero for each participating lender.

Treatment of creditors will include:

• The Bank of America secured claim will be paid in full for principal, interest, fees and expenses, subject to the offset amount;

• The G.E. Commercial Finance Business Property Corp. secured claim will be paid in full for all past due principal, interest and late fees, and the balance of the debt will be subject to and paid in accordance with existing loan documents; and

• Holders of administrative claims and general unsecured claims will be paid in full.

The disclosure statement hearing is scheduled for Aug. 26.

Maronda, a Clinton, Pa., homebuilder, filed for bankruptcy on April 18. The Chapter 11 case number is 11-22418.

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