UCI Holdings filed with the U.S. Bankruptcy Court a Revised Joint Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The Plan provides for the reorganization of the Debtors under chapter 11 of the Bankruptcy Code. If the Plan is confirmed and consummated, the Debtors, as Reorganized Debtors, will emerge from bankruptcy with a substantially deleveraged capital structure. Under the Plan, (1) all existing equity interests in both UCI and UCI Holdings will be extinguished and cancelled, (2) the Holders of Prepetition ABL Credit Facility Claims will be Unimpaired, and Holders of Prepetition ABL Credit Facility Claims will have such Claims paid in full, in cash, and (3) 91% of the New Common Stock of Reorganized UCI (with 5% reserved for the Management Equity Incentive Plan and 4% for the Backstop Fee) will be distributed to (a) the Holders of Senior Notes Claims in exchange for the cancellation of their prepetition indebtedness, (b) General Unsecured Claims not electing cash, and (c) parties participating in the Rights Offering.”
The Disclosure Statement continues, “The Plan also provides for the reinstatement or payment in full in Cash of Claims entitled to administrative expense or priority status under the Bankruptcy Code….Specifically, the Plan contemplates (i) a restructuring of the Debtors through a debt-for-equity conversion of the Debtors’ outstanding Senior Unsecured Notes, (ii) the issuance of the New First Lien Exit Facility, and (iii) unless the Debtors and the Plan Sponsors elect otherwise, the issuance of a Second Lien Rights Offering Facility or New Second Lien Exit Facility.” The Court scheduled a December 6, 2016 hearing to consider the Plan, with objections due by November 28, 2016.
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