Pliant gains approval of statement drafted by Apollo, noteholders

By Caroline Salls

Pittsburgh, Aug. 18 - Pliant Corp. obtained court approval of a disclosure statement for its joint plan of reorganization filed with creditor Apollo Management VI, LP, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Oct. 6.

As previously reported, Apollo filed a competing plan of reorganization in mid-July after Pliant's exclusivity was terminated. Pliant then filed an amended version of its pre-packaged plan on July 30.

According to court documents, Pliant's first-lien noteholders and Apollo agreed at a July 31 disclosure statement hearing to resolve the issues raised by the noteholders in connection with Apollo's original plan. The joint plan reflects that agreement.

Apollo said Pliant's official committee of unsecured creditors also supports the proposed joint plan.

Under the joint plan:

• Holders of Pliant's first-lien notes will receive $100 million in cash and $250 million of new senior secured notes;

• Holders of Pliant's second-lien notes will receive either $87.50 in cash and $87.50 in liquidation preference of new preferred stock for each $1,000 of notes or a share of a rights allocation, at the noteholders' option;

• General unsecured creditors will receive either $0.175 on the dollar in cash or the cash amount it would have received as a member of the small claims class, which pays holders of claims of $3,000 or less in full in cash;

• Holders of debtor-in-possession facility claims and pre-bankruptcy credit facility claims will be paid in full in cash;

• Subsidiary interests will be retained by the reorganized debtors; and

• The claims and interests of Pliant's existing equity holders will be extinguished and holders will receive no distribution.

Pliant has obtained a commitment from Barclays Capital to provide $175 million of exit financing, which will mature three years from the plan effective date and bear interest at either Libor plus 450 basis points or Base rate plus 350 bps, at reorganized Pliant's option.

Pliant, a Schaumburg, Ill.-based producer of value-added film and flexible packaging products, filed for bankruptcy on Feb. 11, 2009. 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.