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WTD ANNOUNCES DETAILS OF REORGANIZATION PLAN, SCHEDULE FOR PLAN CONFIRMATION

 WTD ANNOUNCES DETAILS OF REORGANIZATION PLAN,
 SCHEDULE FOR PLAN CONFIRMATION
 PORTLAND, Ore., Oct. 5 /PRNewswire/ -- WTD Industries Inc. (NASDAQ: WTDQC) announced today that Judge Samuel J. Steiner, presiding over the company's Chapter 11 reorganization proceedings, has approved the company's Disclosure Statement and has set Nov. 23, 1992, for the Plan of Reorganization confirmation hearing.
 The Disclosure Statement and Plan, prepared after the company and its major creditor groups reached agreement on the terms of the reorganization, will be mailed beginning next week to the company's creditors and shareholders with a ballot soliciting their vote for the plan.
 Under the plan, creditors will receive cash, payments over time, preferred stock, common stock or some combination. Approximately 90 percent of WTD's creditors, including all creditors with claims of $3,000 or less, will receive cash payments equal to their claim.
 The bankruptcy court may confirm the plan if it is approved by creditors holding more than two-thirds in amount and one-half in number of the claims voted in each class. The bankruptcy court must also make certain findings to permit confirmation of the plan. The court can confirm the plan, even if certain classes do not accept it, if the court finds that the plan does not discriminate unfairly and provides fair and equitable treatment to any class rejecting it.
 There are nine classes under the plan and certain unclassified claims:
 Class 1: Consists of the secured portion of debt collateralized by specific assets. Approximately $7.3 million in claims are in this class. Except for the maturity and payment dates, most claims will be paid pursuant to the original instruments.
 Class 2: Consists of claims of the banks and insurance companies which provided working capital and long-term financing to WTD. Approximately $88.7 million in claims are in this class. As part of the plan, First Interstate Bank of Oregon, which is owed $9.2 million, will receive a cash payment of $2.4 million in full settlement. The remaining banks and insurance companies will receive their pro rata share of $58,627,000 term debt, $20,648,000 senior preferred stock and 1,868,000 shares of WTD common stock. In addition, the company will terminate various legal actions against creditors in this class.
 Class 3: Consists of statutory lien claims. Any claims in this category will be paid in 40 quarterly installments of principal and interest.
 Class 4: Consists of certain priority unsecured claims such as wages. WTD does not believe that any such claims exist. Any claims in this class will be paid in full in cash.
 Class 5: Consists of all unsecured claims (other than the company's Senior Subordinated Debentures) for $3,000 or less, and all larger claims that are voluntarily reduced to $3,000 by the holders of such claims. These claims are primarily smaller trade payables. Class 5 claims will be paid in full in cash up to a total of $1.8 million. WTD has approximately 1,500 creditors holding unsecured claims of $3,000 or less which total approximately $1 million in the aggregate.
 Class 6: Consists of the claims of creditors who provided unsecured financing to WTD on a term basis, the unsecured portion of secured claims and all other unsecured claims not in other classes. Class 6 claims total approximately $6.4 million. Class 6 creditors will receive senior preferred stock equal to 100 percent of their claim.
 Class 7: Consists of the unsecured claims of WTD's trade creditors (except for those creditors paid under Class 5). There are approximately 300 creditors in this class whose claims exceed $3,000 and aggregate approximately $5.5 million. Class 7 creditors will receive, at their option, either senior preferred stock or an unsecured note equal to 100 percent of their claim, payable in seven equal annual installments, without interest.
 Class 8: Consists of the holders of the company's Senior Subordinated Debentures. WTD estimates that this class consists of approximately 50 creditors with claims totaling approximately $22.7 million. Class 8 creditors will be paid by a combination of promissory notes and junior preferred stock. Each creditor will receive an unsecured note in a principal amount equal to that creditor's pro rata share of $3 million. In addition, Class 8 creditors will receive junior preferred stock convertible into 6,852,400 shares of WTD common stock.
 Class 9: Consists of WTD's existing shareholders. There are approximately 4,000 beneficial shareholders. Shareholders will exchange their current common stock in a 4-for-10 "reverse" split. For every 10 shares of existing common stock, shareholders will receive four shares of common stock of the reorganized company. As of Aug. 31, 1992, 6,229,452 shares of common stock were outstanding. A 4-for-10 "reverse" split would result in 2,491,781 shares in the reorganized company.
 1,245,900 shares of common stock will be available for an employee stock option plan.
 Assuming the conversion of the junior preferred stock and the 4-for-10 "reverse" split of existing equity, but before consideration of the stock options or any conversion of senior preferred stock, the equity ownership of WTD's outstanding common shares on the effective date will be as follows:
 Class 2 (banks and insurance companies) 16.7 percent
 Class 8 (debenture holders) 61.1 percent
 Class 9 (current shareholders) 22.2 percent
 The following table summarizes the treatment of the various classes under the plan.
 CLASS TREATMENT
 Class 1
 Debt secured by Paid pursuant to original secured obligation
 specific assets
 Class 2
 Banks and insurance $58,627,000 in secured notes
 companies $20,648,000 in senior preferred stock
 $2,400,000 in cash
 1,868,800 shares common stock
 Class 3
 Statutory lien Quarterly cash payments
 claimants
 Class 4
 Non-tax priority Cash
 claimants
 Class 5
 Unsecured claims Cash
 $3,000 or less
 Class 6
 All other unsecured Senior preferred stock equal to
 creditors, except in Allowed Claim (approximately $6.4 million)
 Class 4,5,7 and 8
 Class 7
 Larger trade Cash payments over six years or senior
 creditors preferred stock
 Class 8
 Debenture holders $3,000,000 unsecured notes
 $19,688,000 junior preferred stock
 (convertible into 6,852,400 shares of
 common stock)
 Class 9
 Existing shareholders Four-for-10 "reverse" split of common stock
 (2,491,781 shares common stock)
 The senior preferred stock will have an annual dividend payment equal to the prime rate (but not less than 6 percent or more than 9 percent) and is convertible into WTD common stock at $7.50 per share after April 30, 1999.
 The junior preferred stock, which does not have a dividend, can be converted at any time into a total of 6,852,400 shares of common stock.
 The company believes that the plan will significantly improve its financial position.
 "The plan will convert a large portion of WTD's existing debt to senior preferred stock, junior preferred stock and common stock. This will restore substantial equity to the company's balance sheet, increase the likelihood of operating success, and create maximum value for all parties," said WTD President Bruce L. Engel.
 The company's Aug. 31, 1992, balance sheet shows Liabilities Subject to Compromise (generally, debt that is unsecured or undersecured) totaling approximately $133 million. The amount of long-term debt projected in the Disclosure Statement at April 30, 1993, is approximately $68 million, including current maturities of $2 million. This reduction from the Liabilities Subject to Compromise results principally from the issuance of senior preferred, junior preferred and common stock, as well as cash payouts and the cancellation of indebtedness. As a result, Stockholders' Equity is projected in the Disclosure Statement to be approximately $9 million at April 30, 1993, an improvement of $53 million from a deficit of $44 million at Aug. 31, 1992.
 The existing management and board of directors will remain in place, and an additional director will be appointed by the holders of the junior preferred stock.
 -0- 10/5/92
 /NOTE TO EDITORS: This press release should be read in conjunction with the Disclosure Statement and Plan of Reorganization/
 /CONTACT: Bruce Davis of WTD Industries, 503-246-3440/
 (WTDQC) CO: WTD Industries Inc. ST: Oregon IN: PAP SU: BCY


LM-JH -- SE006 -- 6799 10/05/92 17:43 EDT
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Date:Oct 5, 1992
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