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Real Industry Bankruptcy Plan Filed

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Real Industry filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.

According to the Disclosure Statement, “The Debtor filed its Chapter 11 Case in order to continue to operate its business and preserve the value of its tax attributes, which include net operating losses totaling in excess of $900 million. If Confirmed and consummated, the Plan will ensure Real Industry has the working capital necessary to continue to implement its business strategy, reorganize and exit from bankruptcy, and fund its post-emergence operations to pursue future acquisitions. Under the Plan, all Series B Preferred Interests and Common Interests will be cancelled and Holders of Series B Preferred Interests in Class 4 and Common Interests in Class 5 will together receive 51% of the issued and outstanding New Common Stock of the Reorganized Debtor as of the Effective Date.”

In addition, “The remaining 49% of the issued and outstanding New Common Stock of the Reorganized Debtor as of the Effective Date will be purchased by 210/RELY Partners, and Goldman Sachs Asset Management, and/or its designated affiliates (together, the ‘SPA Investors’), for a purchase price of $17,500,000. After the Petition Date, the Debtor engaged in substantive discussions with the SPA Investors and Aleris Corporation (‘Aleris’), the Holder of 100% the Series B Preferred Interests, as well as several of the largest Holders of the Common Interests regarding the terms of the Plan and the restructuring set forth therein….[T]he Debtor intends to seek Confirmation of the Plan and emerge from its Chapter 11 Case pursuant to the Plan on or before May 10, 2018.”

The Court scheduled a March 29, 2018 hearing to consider the Disclosure Statement, with objections due by March 22, 2018.

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