Reichhold disclosure statement approved; plan hearing set for Jan. 13

By Caroline Salls

Pittsburgh, Nov. 19 – Reichhold Holdings US, Inc. obtained court approval of the disclosure statement for its plan of liquidation, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Jan. 13.

As previously reported, Reichhold announced in April that the $146.75 million sale of most of its assets had been completed. The sale was approved by the court on Jan. 12, 2015.

In addition, Reichhold said it completed a debt-for-equity exchange with a group of investors led by Black Diamond Capital Management LLC and including J.P. Morgan Investment Management, Inc., Third Avenue Management LLC and Simplon Partners LP. As a result of that transaction, Reichhold now is owned by those and other investors.

Treatment of creditors will include the following:

• Administrative claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• Holders of secured claims will either be paid in full in cash or receive the collateral securing the claim;

• Holders of general unsecured claims that are not insured claims will receive a share of liquidating trust interests;

• Holders of convenience claims will receive cash equal to 5% of their claims; and

• Holders of interests and intercompany claims will receive no distribution.

Reichhold supplies resins for the industrial, transportation, construction, marine, consumer and graphic arts markets. It is based in Durham, N.C. The company filed for bankruptcy on Sept. 30, 2014 under Chapter 11 case number 14-12237.

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