Arclin disclosure statement approved; plan confirmation hearing Dec. 8

By Caroline Salls

Pittsburgh, Oct. 14 - Arclin's disclosure statement was approved Wednesday by the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Dec. 8.

Under the plan, the company's funded debt will be reduced to $60 million from $234 million.

Arclin said the plan has broad support from its first-lien and second-lien lenders.

Upon confirmation of the plan, affiliates of Black Diamond Capital Management, LLC and Silver Point Capital, LP will become the majority owners of Arclin through a debt-for-equity exchange.

According to the disclosure statement, the company will have 10 million new equity interests on the plan effective date, and it will be authorized to issue 20 million new equity interests.

Treatment of creditors will include:

• Holders of administrative claims will be paid in full in cash;

• Holders of priority tax claims, other priority claims and other secured claims will have their claims reinstated;

• Holders of $210.03 million in first-lien claims will recover 88.4% through their share of 97% of the new equity interests in the reorganized company and up to $60 million in new term debt;

• Holders of $31.32 million in second-lien claims will receive a share of $12.66 million of the second-lien claims against the U.S. and Canadian debtors and the Canadian partnerships, 3% of the new equity interests and new warrants; and

• Holders of $9.63 million in general unsecured claims, intercompany claims and existing equity interests will receive no distribution.

The company said it plans to enter into a $40 million exit facility.

Arclin, a Mississauga, Ont., provider of bonding and surfacing solutions, filed for bankruptcy on July 27. Its Chapter 11 case number is 09-12628.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.