Pliant amended plan of reorganization sweetens pot for second-lien noteholders, unsecured creditors

By Caroline Salls

Pittsburgh, July 30 - Pliant Corp. filed an amended plan of reorganization and related disclosure statement Thursday with the U.S. Bankruptcy Court for the District of Delaware to provide greater consideration to holders of second-lien note claims and general unsecured claims.

Under the amended plan, Pliant's first-lien notes will be exchanged for 98.5% of the new common stock of the reorganized company, reduced from 100%.

Holders of second-lien note claims and general unsecured claims will receive a share of interests in a creditor trust that will hold 1.5% of the new common stock, new eight-year series A warrants for the purchase of 7.5% of the new common stock at an exercise price per share that reflects a $420 million total market value of equity and eight-year series B warrants to purchase 12.5% of the new common stock at an exercise price that reflects a $500 million market value.

Under the original plan, holders of second-lien notes and general unsecured claims were slated to receive warrants if they voted to accept the plan.

Pliant said the new distribution removes the plan acceptance stipulation.

Plan creditor treatment

Specifically, plan creditor treatment will include:

• Holders of administrative expense claims, unsecured convenience claims of $3,000 or less and priority tax claims will be paid in full in cash;

• Debtor-in-possession facility claims and pre-bankruptcy credit facility claims will be paid in full from the proceeds of the company's exit financing;

• Priority non-tax claims and other secured claims will be reinstated;

• Holders of first-lien note claims will receive 98.5% of the new common stock in the reorganized company;

• Holders of general unsecured claims and second-lien notes claims will receive warrants and a share of 1.5% of the new common stock in the reorganized company;

• Holders of second-lien notes indenture trustee claims and senior subordinated notes indenture trustee claims will be paid in full up to a total of $1 million;

• Intercompany claims will either be reinstated or discharged;

• Holders of section 510(b) claims, Pliant preferred stock interests and Pliant outstanding common stock interests will receive no distribution; and

• Holders of subsidiary interests will retain their interests.

Pliant, a Schaumburg, Ill.-based producer of value-added film and flexible packaging products, filed for bankruptcy on Feb. 11. Its Chapter 11 case number is 09-10443.

© 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.