Reunion Industries 13% noteholders organizing

By Caroline Salls

Pittsburgh, Dec. 13 - Holders of Reunion Industries, Inc.'s 13% senior notes due 2003 and 2006 are looking to form an informal committee to maximize recovery to noteholders in the company's Chapter 11 bankruptcy case, according to a letter sent to noteholders by indenture trustee U.S. Bank NA.

The noteholders are in discussions with the company and the indenture trustee, the letter said.

According to the letter, Reunion's bankruptcy filing prompted an event of default on the notes.

U.S. Bank said the company hopes to reach an agreement to sell its assets by Jan. 28, and the sale proceeds are expected to be used to pay off the company's secured debt, including the notes.

Reunion, a Pittsburgh-based manufacturer of metal and plastic products, filed for bankruptcy on Nov. 29 in the U.S. Bankruptcy Court for the District of Connecticut. Its Chapter 11 case number is 07-50727.

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