| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers O > Headlines for Output Services Group Inc. > News item |
Output Services Group receives confirmation of pre-packaged plan
By Sarah Lizee
Olympia, Wash., Nov. 21 – Output Services Group, Inc. received confirmation of its pre-packaged Chapter 11 plan of reorganization on Tuesday, according to an order filed with the U.S. Bankruptcy Court for the Southern District of Texas.
The company said in a press release that it hopes to emerge by the end of November.
The plan reflects the company’s agreement with its first-lien lenders, mezzanine lenders and preferred and common equity holders to significantly reduce its debt and annual interest expenses.
The pre-packaged plan aims to reduce debt by about $550 million, or 73%, to $235 million, lower annual cash interest expense by 65%, provide for $100 million in financing and allow for the exit of the U.K. business.
Upon emergence, Pemberton will remain the largest equity holder along with new ownership.
The plan leaves all known general unsecured trade and litigation creditors unimpaired.
Other secured claims and other priority claims will be paid in full.
Holders of existing first-lien claims are expected to receive a 30.1% recovery. Holders will receive their pro rata share of new takeback loans and exchange reorganized equity, and election rights to provide up to its rights offering share of new first-lien loan commitments in a total amount equal to $25 million.
Other general unsecured claimholders are set to receive a pro rata share of liquidating trust assets and £3 million.
Intercompany claims and intercompany interests will be reinstated, distributed, contributed, set off, canceled or otherwise addressed.
Existing interests will be canceled with no distribution.
Output Services is a provider of billing and payment solutions based in Carol Stream, Ill. The company filed bankruptcy on Oct. 15 under Chapter 11 case number 23-90799.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.