UCI International disclosure statement approved; plan hearing Dec. 6

By Caroline Salls

Pittsburgh, Oct. 17 – UCI International, LLC received court approval of the disclosure statement for its amended plan of reorganization, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Dec. 6.

As previously reported, the plan is supported by UCI’s official committee of unsecured creditors and an informal committee of senior noteholders.

In addition, UCI said it reached an agreement with senior unsecured noteholders comprised of funds and accounts under the management of Blackrock Financial Management, Inc., Credit Suisse Asset Management, LLC, and J.P. Morgan Investment Management, Inc. to backstop $30 million of incremental exit financing.

Collectively, the company said these parties hold more than 80% in principal amount of the senior unsecured notes outstanding and will become the controlling equity holders of reorganized UCI under the plan.

The plan, consistent with a stipulation between the company, the unsecured creditors committee and the lenders and agent under UCI’s pre-bankruptcy ABL credit facility, provides for the payment in full of pre-bankruptcy ABL credit facility claims.

All existing equity interests will be extinguished and cancelled.

Pre-bankruptcy ABL credit facility claims will be paid in full in cash.

Holders of senior notes claims, holders of general unsecured claims not electing cash and rights offering participants will receive 91% of the new common stock of reorganized UCI, with 5% earmarked for management incentive plan payments and 4% for backstop fees.

The plan also provides for the reinstatement or payment in full in cash of claims entitled to administrative expense or priority status.

UCI is an Evansville, Ind.-based supplier to the light- and heavy-duty vehicle aftermarket for replacement parts, including filtration, fuel delivery systems, vehicle electronics and cooling systems products. The company filed bankruptcy on June 2 under Chapter 11 case number 16-11354.

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