Renaissance tweaks plan treatment of unsecured, secured creditors

By Caroline Salls

Pittsburgh, Sept. 3 - Renaissance Custom Homes, LLC filed an amended plan of reorganization and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of Oregon that changes the proposed distribution to general unsecured and secured creditors.

Under the amended plan, unsecured creditors will receive their share of 35% EBITDA generated by the reorganized company on a quarterly basis for five years.

Previously, these creditors were slated to receive preferred stock in the reorganized company.

In addition, holders of secured claims will retain their security interests in and liens on the collateral securing their claims. Under the original plan, these creditors were scheduled to be paid according to an agreement to be reached with each creditor.

As previously reported, president and owner Randal S. Sebastian has agreed to exchange an administrative claim arising from the assignment to the company of Sebastian's right to tax refunds for newly issued common stock in the reorganized company.

Plan creditor treatment will include:

• Holders of administrative claims, priority tax claims and other priority claims will be paid in full in cash;

• Holders of secured claims will retain their interest and liens on the collateral securing the claim;

• Holders of construction lien claims will be paid in full plus 3.25% interest;

• Holders of county secured claims for property taxes will retain their interest and be paid in full upon the sale of the property securing the claim;

• Holders of General Motors and Ford claims will be repaid the value of the vehicles securing the claims, plus 3.25% interest;

• Holders of small unsecured claims will recover 25% in cash;

• Holders of general unsecured claims will receive a share of 35% of the EBITDA generated by the reorganized company for five years;

• Holders of subordinated claims will receive a share of all remaining unsecured proceeds; and

• Holders of existing equity will receive no distribution.

The company said the plan effective date will be the later of Jan. 1 or 10 days following confirmation of the plan.

Renaissance, a Lake Oswego, Ore.-based residential real estate and home building company, filed for bankruptcy on Sept. 25, 2008. Its Chapter 11 case number is 08-35023.

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