The U.S. Bankruptcy Court approved American Gilsonite’s (AGC) Disclosure Statement and concurrently confirmed its Joint Prepackaged Chapter 11 Plan of Reorganization. The Plan, which will transition ownership to the Company’s second lien noteholders, was also supported by current shareholders.
According to documents filed with the Court, “Prior to the Effective Date…AGHC shall be merged, pursuant to the Downstream Merger, into AGC and all issued and outstanding common stock of AGHC shall be exchanged for common stock in AGC on a pro rata basis based on the number of authorized shares of common stock of AGC. Any other AGHC Interest shall be deemed cancelled as a result of the Downstream Merger, and the holders of such other AGHC Interests shall not receive or retain any property under the Plan on account of such Interests.”
In addition, “On the Effective Date, after the consummation of the Reincorporation Merger, and after giving effect to the distributions pursuant to this Plan, the shares of common stock in Reorganized AGC so received by former holders of common stock of AGHC as a result of the Reincorporation Merger shall represent two percent (2%) of the New Common Stock, which and shall be distributed to such former holders of common stock of AGHC on a Pro Rata basis, subject to Section 6.15 of the Plan.” This uintaite mining company filed for Chapter 11 protection on October 24, 2016, listing more than $100 million in pre-petition assets.
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