Kaiser Gypsum receives confirmation of plan of reorganization

By Sarah Lizee

Olympia, Wash., July 29 – Kaiser Gypsum Co., Inc. and Hanson Permanente Cement, Inc.’s modified joint plan of reorganization was confirmed Thursday by the U.S. Bankruptcy Court for the Western District of North Carolina.

Under the plan, administrative claims and priority tax claims will be paid in full.

Secured claims will be paid in full in cash or reinstated, at the option of the debtors.

Holders of general unsecured claims will receive cash in an amount equal to their claims including any post-petition interest.

An asbestos trust will be funded with a $49 million cash payment, plus a $1 million note, as well as the assignment of the Kaiser debtors’ rights under insurance policies covering asbestos personal injury claims.

Surety bond claims, intercompany claims and interests will be reinstated.

Kaiser Gypsum, an Irving, Tex.-based manufacturer of construction and remodeling materials, filed bankruptcy on Sept. 30, 2016. The Chapter 11 case number is 16-31602.

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