The U.S. Bankruptcy Court approved UCI Holdings’ Disclosure Statement and scheduled a December 6, 2016 hearing to consider the Revised Joint Plan of Reorganization. Plan objections must be filed by November 28, 2016.
As previously reported, “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 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.”
Court-filed documents continue, “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.”
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