The Bank of New York Mellon, in its capacity as indenture trustee for M.I.G., filed with the U.S. Bankruptcy Court a Joint Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The Plan contemplates the complete deleveraging of the Debtors through the conversion of all Notes Secured Claims on account of the Senior Secured Notes and the Prepetition Indenture, and all General Unsecured Claims (including the Notes Deficiency Claim), to new equity in MIG Holdings, a new Republic of the Marshall Islands limited liability company, to be formed by the Debtors prior to the Effective Date.”
The Disclosure Statement continues, “On the Effective Date MIG Holdings will become the sole member of, and holder of 100% of the Interests in, Reorganized MIG. All assets, including the Cash and all litigation claims shall vest in Reorganized MIG for the benefit of all holders of the New MIG Interests. Holders of Notes Secured Claims that (a) are not ‘accredited investors’ (as defined in Rule 501 of Regulation D promulgated under the Securities Act) or ‘qualified institutional buyers’ (as defined in Rule 144A(a)(1) under the Securities Act) or (b) are beneficial owners (as defined in Rule 13d-3 under the Exchange Act) of Notes Secured Claims in an aggregate amount, including all Notes Secured Claims beneficially owned by Affiliates of such Holder, that is not more than $750,000, will receive New MIG Interests that are issued through DTC. All other Holders of Notes Secured Claims will receive New MIG Interests that are issued in un-certificated book entry form.”
The Court scheduled an October 13, 2016 hearing to consider the Disclosure Statement, with objections due by October 6, 2016. Read more bankruptcy news.
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