Outsourcing Solutions expects confirmation of reorganization plan

New York, Oct. 3 - Outsourcing Solutions Inc. said the U.S. Bankruptcy Court for the Eastern District of Missouri indicated Friday that it intends to confirm the company's amended plan of reorganization.

The St. Louis business process outsourcing firm expects a written order soon and anticipates emerging from Chapter 11 "in the near future."

The plan will reduce Outsourcing Solutions' debt to $175 million from $600 million at the time of its Chapter 11 filing in May.

Under the plan, secured creditors will receive 69% of the reorganized company's equity. Private equity firm Madison Dearborn Partners will receive 18.5% of the equity through a new investment. Certain other creditors will receive 5% of the equity. The remaining 7.5% has been reserved reserved for a management performance plan.

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