Reunion indenture trustee sues company to recover senior notes payment

By Caroline Salls

Pittsburgh, Sept. 4 - Reunion Industries, Inc. notes trustee U.S. Bank NA filed a lawsuit Wednesday seeking payment of more than $2.3 million allegedly owed on Reunion's 13% senior notes and senior exchange notes due 2003 and its senior notes and senior exchange notes due 2006, according to a filing with the U.S. Bankruptcy Court for the District of Connecticut.

Despite entering into two court-approved settlement agreements, U.S. Bank said there is still a dispute over the amount owed on the senior notes.

According to the lawsuit, Reunion disputes the amount the indenture trustee claims is owed, and the company has refused to make payment.

Meanwhile, U.S. Bank said the company's calculation fails to account for interest owed on the notes and inappropriately applies a credit for a payment made in May.

The indenture trustee is asking the court to determine how much is owed on the notes and to order Reunion to pay that amount.

Reunion, a Pittsburgh-based manufacturer of metal and plastic products, filed for bankruptcy on Nov. 29, 2007. Its Chapter 11 case number is 07-50727.

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