Maxim Crane senior bank lenders to receive 87.7%-89.1% recovery under reorganization plan

New York, Oct. 4 - Maxim Crane Works' senior bank lenders will receive recovery of 87.7% to 89.1%, according to the revised disclosure statement for the company's plan of reorganization.

Claims in the class total $473.86 million from Maxim's term loan and revolver.

The senior lenders will receive 88% to 90% of the company's equity.

The company's second priority term B lenders will receive recovery of 38% to 49.5%, according to the disclosure statement, which was filed with the U.S. Bankruptcy Court for the Western District of Pennsylvania Monday. Claims in this class total $51.02 million. The group will receive 10% to 12% of the reorganized company's equity.

The term C lender with a claim of $9.08 million has waived its claims.

Holders of the Pittsburgh-based crane rental company's 9 3/8% senior secured notes due 2008 at the operating company level and holders of $55.62 million of 12 3/8% senior discount debentures due 2009 at the holding company level will get warrants to buy a 2% stake in the reorganized company. There are an estimated $192.11 million in senior secured note claims. Recovery for these classes is put at 0.2% to 0.3%.

Equity interests will be cancelled.

The recovery values are based on a net enterprise value of $475 million and a $250 million to $300 million exit facility, leaving $175 million to $225 million of equity to be distributed.

Maxim Crane is currently negotiating with lenders for an exit facility. One potential lender has presented a term sheet for around $300 million. The facility will include a revolver for working capital and a term note to fund emergence costs and cash payments to the senior bank lenders.

Maxim Crane has lock-up agreements to support the reorganization with 66% of the senior lenders holding 76% of the claims and all the holders of the second priority and term C claims.

The plan will reduce the company's debt by $480 million to $530 million, according to the disclosure statement.

ACR filed for bankruptcy on June 14. Its Chapter 11 case number is 04-27848.

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