The U.S. Bankruptcy Court approved Real Industry’s Disclosure Statement and scheduled a May 1, 2018 hearing to consider the Revised Plan of Reorganization. Plan objections are due by April 26, 2018.
As previously reported, “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. 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, LP and Goldman Sachs Asset Management, L.P., and/or its designated affiliates (together, the ‘SPA Investors’), under terms which include a purchase price of $17,500,000.”
In addition, “The SPA Investors also provided the Debtor with a post-petition financing facility of $5,500,000, and will provide a commitment to provide a $500 million acquisition financing facility on terms to be set forth in the Acquisition Facility Commitment, which shall be included in the Plan Supplement. The SPA Investors have experience acquiring companies with NOLs and have significant connections and capital, which should permit the Debtor to find a value maximizing transaction upon emergence….After extensive negotiations, the SPA Investors informed the Debtor of their entry into restructuring support agreements (each, an ‘RSA’) with Aleris and three investors that collectively hold approximately 15% of the Common Interests.
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