All Star Gas Corporation Emerges From Chapter 11 Protection; John Gordon, Who Had Led Turnaround since April 2003, Remains as Company's Chief Executive.LEBANON, Mo. -- All Star Gas and its affiliates are scheduled to emerge from the protection of Chapter 11 following a federal bankruptcy court's approval of the company's plan of reorganization, and the company also announced that its board had retained on a permanent basis John R. Gordon, who had served as the company's chief executive during the Chapter 11 case. The 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. action followed approval of the plan of reorganization by the company's senior lenders and 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. . Under the plan, the senior secured Noteholders will exchange more than $60 million of debt for 100 percent of the stock of the company. Most other secured lenders will be paid in full over five years, and unsecured creditors will, depending on their class, receive distributions of up to 7.5 percent, for most unsecured creditors or, in other cases, up to 45 percent. "All of us are happy to get court approval for the plan of reorganization and are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about what the future holds for All Star Gas and its customers," said John Gordon John Gordon may mean:
tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. Partners, a Dallas-based turnaround management firm. The plan was the product of extensive negotiations among All Star Gas, the Official Committee of Unsecured Creditors appointed in its Chapter 11 case, and the company's senior secured Noteholders. "This has been a textbook chapter 11 case," stated Tom Patterson Harry Thomas "Tom" Patterson O.C., O.Ont., B.A., LL.D. (June 11 1920 - February 23, 2005) was a Stratford, Ontario born journalist who went on to found the Stratford Festival of Canada, the largest theatre festival in Canada. of Klee, Tuchin, Bogdanoff & Stern LLP LLP - Lower Layer Protocol , bankruptcy counsel for All Star. "The case had its moments of contention, but John Gordon and his management team built successfully on the company's traditional strengths to create a solid business, winning the confidence of key creditor groups and ultimately enabling the company to reorganize on a largely consensual basis." All Star Gas filed for Chapter 11 reorganization protection on July 21, 2003, and filed its Plan of Reorganization with the U.S. Bankruptcy Court on Dec. 31, 2003. For more than 30 years, All Star Gas has provided dependable, affordable propane propane, CH3CH2CH3, colorless, gaseous alkane. It is readily liquefied by compression and cooling. It melts at −189.9°C; and boils at −42.2°C;. to residential and business customers. The company and its subsidiaries currently supply approximately 48,000 customers in Arkansas, Arizona, Colorado, Missouri, Oklahoma and Wyoming. Further information on All Star Gas is accessible at www.allstargas.com. |
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