Oakwood Homes disclosure statement approved

New York, Oct. 3 - Oakwood Homes Corp. said the United States Bankruptcy Court for the District of Delaware approved its disclosure statement and authorized it to solicit votes from creditors to approve the plan of reorganization.

The Greensboro, N.C. manufactured housing company said it is aiming to have a confirmation hearing in late November.

Oakwood also said it has obtained a commitment for $250 million in exit financing from Greenwich Capital Financial Products, Inc. The new facility will replace Oakwood's debtor-in-possession credit facilities and the loan purchase facility that provides short-term liquidity for warehousing loans in the consumer finance company.

Under the reorganization plan, holders of Oakwood's $303 million of senior unsecured debt, its guarantees of principal and interest on $275 million principal amount of subordinated Remic securities and certain other unsecured debt will receive all the company's post-restructuring equity.

Existing common shares will be exchanged for out-of-the-money warrants to purchase approximately 10% of the post-restructuring stock.

© 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.