Maxim Crane confirmation hearing scheduled for Dec. 30

By Jeff Pines

Washington, Oct. 27 - Maxim Crane Works's hearing to confirm the company's reorganization plan will be held Dec. 30, according to a Tuesday filing with the Securities and Exchange Commission.

Senior bank lenders for Maxim, whose legal name is ACR Management LLC, will recover 87.7% to 89.1%, according to the amended disclosure statement for the company's plan of reorganization.

Under the plan, they will get 88% to 90% of the reorganized company's equity.

Second priority term B lenders will recover 38% to 49.5%, according to the disclosure statement. 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. Recovery for these classes is put at 0.2% to 0.3%.

Shareholders will get nothing.

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.

The voting deadline is Dec. 20.

ACR filed for bankruptcy on June 14 in the U.S. Bankruptcy Court for the Western District of Pennsylvania. Its Chapter 11 case number is 04-27848.

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