Advanced Glassfiber Yarns LLC Receives Court Approval of Disclosure Statement; Company to Commence Solicitation for Plan of Reorganization.Business Editors AIKEN, S.C.--(BUSINESS WIRE)--Sept. 25, 2003 Confirmation Hearing Scheduled for November 17, 2003 Advanced Glassfiber Yarns LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (the "Company") announced that on September 22, 2003, the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the District of Delaware approved its First Amended Disclosure Statement, paving the way for the Company to commence solicitation of votes for approval of its First Amended Joint Chapter 11 Plan of Reorganization (the "Reorganization Plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. ") and complete its Chapter 11 restructuring. The Reorganization Plan is supported by the Company's Senior Secured Lenders and the official committee of unsecured creditors Unsecured Creditor An individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because they have nothing to fall back on should the borrower default on the loan. A debenture holder is an unsecured creditor. appointed in the Company's reorganization case. The amended Reorganization Plan contemplates, among other things, that approximately $184 million in claims of the Company's senior secured lenders will be satisfied through a combination of $120 million in new secured notes, cash, and a substantial majority interest of the common stock of the reorganized company. General unsecured creditors of the Company and holders of the Company's approximately $163 million of 9 7/8% senior subordinated notes will collectively receive their pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. share of 15% of the common stock of the reorganized company prior to dilution, plus warrants that will entitle such holders to receive additional distributions in certain circumstances in satisfaction of their claims. No distributions will be made to the Company's equity holders for their existing equity interests under the Reorganization plan, and all such equity interests in the Company will be canceled. The Court has scheduled a hearing on November 17, 2003 to consider confirmation of the Reorganization Plan. If confirmed at that time, the Company would expect to emerge from Chapter 11 by the end of 2003. Marc L. Pfefferle, the Company's Chief Restructuring Officer, stated: "With the Court's approval of our Disclosure Statement, the timetable for our projected year-end emergence from Chapter 11 remains intact. We are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that our Reorganization Plan has the support of both our senior secured lenders and the official unsecured creditors committee. Such support should provide the momentum for a successful solicitation and plan confirmation process." Advanced Glassfiber Yarns, headquartered in Aiken, SC, is one of the largest global suppliers of glass yarns, which are a critical material used in a variety of electronic, industrial construction and specialty applications. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Certain statements contained herein constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " as that term is defined under the Private Securities Litigation Reform Act of 1995. Such forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be different from those contemplated. The Company assumes no obligation to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting such statements. |
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