UPC Polska obtains court approval for disclosure statement

By Carlise Newman

Chicago, Oct. 31 - UPC Polska Inc. has obtained court approval for its disclosure statement and has begun soliciting votes on the plan. The confirmation hearing is set for Dec. 3.

The company will distribute the plan to voters before Nov. 5, and votes are due by Nov. 24.

Previously, UPC Polska's noteholders objected that the plan undervalues the company and favors insiders.

In response, UPC Polska said that the noteholders specifically negotiated to receive cash and debt for their claims with the UPC entities receiving equity. UPC said there is no disparate treatment of insider and non-insider claims. Class 3 and Class 5 creditors are receiving distributions commensurate with their claims, the company said.

Specifically, the company responded to Deutsche Bank Trust Co.'s objection that the estimated percentage recoveries in the disclosure statement are based on a value of $234 million. The unsecured creditors committee's financial advisors determined that the company's enterprise value is materially higher than $234 million. Under Chanin's preliminary analysis Classes 3 and 5 would receive the same percentage recoveries on their claim, but Class 4 - the only class of insider-creditors - would receive a percentage recovery of 49%.

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