ShengdaTech creditors vote for Chapter 11 plan, equity holders reject

By Jim Witters

Wilmington, Del., Aug. 27 - Voting results on ShengdaTech, Inc.'s first amended Chapter 11 plan of reorganization were announced Aug. 27 in a filing with the U.S. Bankruptcy Court for the District of Nevada.

Craig E. Johnson, senior director of The Garden City Group, Inc., certified the method for tabulating the results of the voting, which ended on Aug. 16.

According to Johnson's filing:

• Among holders of Class 3 general unsecured claims, 74 (92.5%), representing 93.48% of the dollar amount ($131.5 million) voted to accept the plan, while six (7.5%) representing 6.52% of the dollar amount ($9.2 million) voted to reject it;

• Among holders of Class 4 noteholders securities claims, 71 (92.21%), representing 92.21% of the dollar amount ($71), voted to accept the plan, while six (7.79%), representing 7.79% of the dollar amount ($39), voted to reject it;

• Among holders of Class 5 shareholders securities claims, 96 (71.1%), representing 71.1% of the dollar amount ($96), voted to accept the plan, while 39 (28.9%), representing 28.9% of the dollar amount ($39), voted to reject it; and

• Among holders of Class 6 equity interest claims, 38.07% (276,058) voted to reject the plan, while 61.93% (449,045) voted to reject it. Dollar amounts were not listed for the Class 6 claims.

As previously reported, the plan calls for the wind-down of the company's affairs and the distribution of its remaining assets to creditors.

A liquidating trust will be established under the plan that will prosecute specified lawsuits, hold and ultimately sell subsidiary Faith Bloom Ltd.'s shares, govern creditor distributions and facilitate the process for resolving disputed claims.

A plan confirmation hearing is scheduled for Aug. 30.

Based in Shanghai, ShengdaTech makes and markets nano-precipitated calcium carbonate and coal-based chemicals. The company filed for bankruptcy on Aug. 19, 2011. Its Chapter 11 case number is 11-52649.

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