Reunion Industries indenture trustee objects to plan of reorganization

By Jennifer Lanning Drey

Portland, Ore., March 10 - Reunion Industries, Inc.'s indenture trustee for its 13% senior notes objected to the company's plan of reorganization, according to a Monday filing with the U.S. Bankruptcy Court for the District of Connecticut.

Indenture trustee U.S. Bank NA said confirmation of the plan should be denied because it strips the trustee of its rights as a secured creditor by failing to adequately reserve for the full amount of the senior notes claim.

In addition, the trustee said the plan is not feasible because it requires periodic distributions to unsecured creditors without adequately reserving for the full amount of the senior notes claim.

The trustee also said the plan leaves equity unimpaired when secured creditors and unsecured creditors are impaired.

The plan confirmation hearing is scheduled for March 17.

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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