| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Radnor Holdings Corp. > News item |
Radnor proposes plan changes to address confirmation objections
By Caroline Salls
Pittsburgh, Oct. 31 - Radnor Holdings Corp. requested court approval of proposed modifications to its first amended plan of liquidation, including changes to substantive consolidation, lender treatment cram-down and priority and administrative claim distribution provisions, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.
Radnor said all creditors that will be affected by the proposed changes will be given the opportunity to object.
If the court denies confirmation of Radnor's liquidation plan, the company said it may ask the court to dismiss some of its debtors' bankruptcy cases or to convert those cases to Chapter 7 bankruptcy.
If some or all of the debtors' cases are dismissed or converted, Radnor said it is likely that all of its assets would be paid over to its secured lenders.
Under the proposed changes, the debtors will no longer be substantively consolidated under the plan. Instead, the plan will be deemed a separate plan for each of the debtors.
The treatment of secured lender Wells Fargo Bank, NA will no longer be crammed down. In exchange, Wells Fargo has agreed to withdraw its objection to the plan.
In addition, the secured lenders have agreed to channel some of the distributions that would otherwise be made to the lenders to holders of priority tax claims, non-tax priority claims and administrative claims because several of the debtors have no assets remaining to make any distributions under the separate liquidation plans.
A hearing is scheduled for Dec. 1.
Radnor, a Radnor, Pa.-based foam cup, container and expandable polystyrene bead manufacturer, filed for bankruptcy on Aug. 21, 2006. Its Chapter 11 case number is 06-10894.
© 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.