Twin River files reorganization plan based on lender agreement

By Caroline Salls

Pittsburgh, Dec. 16 - UTGR, Inc., doing business as Twin River, filed its plan of reorganization and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the District of Rhode Island.

The company said the cash distributions under the plan will be funded from its cash balances and/or cash from business operations.

According to the disclosure statement, more than 50% of the company's first-lien lenders, a substantial amount of its second-lien lenders and the state of Rhode Island agreed on the terms of a preliminary restructuring transaction to eliminate about $290 million in debt.

The restructuring is conditioned on some necessary legislative actions and amendment of the Video Lottery Terminal contract between the state's Division of Lotteries and UTGR.

Under the plan:

• UTGR will retain and reorganize around Twin River;

• The first-lien lenders will convert their first-lien debt into 100% of the new common stock in the reorganized company and a $300 million new senior secured credit facility;

• For a period of three years following the plan effective date, the holders of second-lien facility claims will, in the event of a sale or recapitalization of the reorganized company, be entitled to 50% of the amount of transaction proceeds between $475 million and $575 million and 75% of the amount of transaction proceeds exceeding $575 million;

• Holders of general unsecured claims will recover 5% in cash;

• Intercompany claims will either be reinstated or holders will receive no distribution, at the option of the reorganized company; and

• Interest holders will receive no distribution.

Twin River, a Lincoln, R.I., casino, filed for bankruptcy on June 23. Its Chapter 11 case number is 09-12418.

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