Printer Friendly

INTERCO FILES AMENDED CHAPTER 11 PLAN OF REORGANIZATION

 INTERCO FILES AMENDED CHAPTER 11 PLAN OF REORGANIZATION
 ST. LOUIS, March 13 /PRNewswire/ -- INTERCO Incorporated (NYSE: ISS)


announced that it and certain of its subsidiaries today filed an amended Chapter 11 Plan of Reorganization (the "plan") and amended disclosure statement with the U.S. Bankruptcy Court in St. Louis. The terms of the amended plan, which are described in the amended disclosure statement, reflect negotiations with representatives of the companies' various creditor constituencies, including extensive negotiations continuing after the filing of the companies' initial plan on Jan. 24, 1992.
 In general, the amended plan provides for satisfaction of all claims against the companies as of the Jan. 24, 1991, Chapter 11 filing date, as well as resolution of certain legal disputes, and provides for distributions to creditors of (i) cash, (ii) new debt securities of the companies, (iii) new INTERCO common stock and (iv) warrants for new INTERCO common stock. At the effective date, the companies would have approximately $648 million of post-reorganization debt and INTERCO would have outstanding 50 million shares of new common stock and warrants to purchase 1.98 million shares of new common stock.
 Proposed plan distributions to major creditor classes are described in greater detail in the schedule below. The amended plan provides for no distributions to the holders of INTERCO's Series D preferred stock, Series E preferred stock or present common stock, and all outstanding shares of those equity securities would be cancelled.
 Richard B. Loynd, chairman of the board and chief executive officer of INTERCO, stated, "INTERCO and its operating companies continue to appreciate the input and cooperation we have received from the companies' creditor constituencies. That cooperation has allowed us to make a tremendous amount of progress in resolving a wide variety of complex and difficult issues."
 Bankruptcy Court approval of the amended disclosure statement is required before the amended plan can be submitted to creditors for their votes. The court has scheduled a hearing on approval of the amended disclosure statement for March 19, 1992. The amended plan cannot become effective until it is confirmed by the Bankruptcy Court, following the solicitation of required approvals from creditors. There can be no assurance that the plan will be approved or, if so, as to the timing or final terms.
 INTERCO INCORPORATED AMENDED PLAN OF REORGANIZATION (MARCH 12, 1992)
 Creditor Class Proposed Distribution
 General unsecured creditors 100% of allowed claims (estimated
 (primarily trade suppliers, total $67.9 million):
 but excluding certain tax, (i) Cash payment of 75% of
 pension and industrial allowed claims; plus
 revenue bond related claims) (ii) 5-year, 8.5% secured notes
 with principal amount equal
 to 25% of allowed claims.
 Holders of medium-term notes Holders of allowed claims will
 receive a pro rata share of:
 (i) Cash payment of
 $109.2 million; plus
 (ii) 9-year 10% secured notes
 with $114 million principal
 amount.
 Pre-petition secured banks Holders of allowed claims will
 receive a pro rata share of:
 (i) Cash payment of $140 million;
 plus
 (ii) 12-year, 9% secured notes with
 $470 million principal amount;
 plus
 (iii) $8 million in additional cash
 or notes; plus
 (iv) Contingent right to payment of
 up to $10 million additional
 cash; plus
 (v) 79% of new INTERCO common
 stock with an assumed
 reorganization value of
 approximately $325.9 million.
 Holders of subordinated Portion of new INTERCO common stock
 debentures with assumed reorganization value
 of approximately $86.6 million
 (21% of total shares of new
 INTERCO common stock) allocated
 as follows:
 15.6% of new INTERCO common
 stock to "13.75% of senior
 debentures"
 4.0% of new INTERCO common
 stock to "discount debentures"
 1.4% of new INTERCO common
 stock to "14.5% of junior PIK
 debentures"
 Plus new warrants to purchase, and
 sufficient to increase the total
 shares of new INTERCO common stock
 allocated to the class to 24% on a
 fully-diluted basis (new warrants
 for 1.98 million shares),
 exercisable over a period of 5 years
 with an exercise price of $12.75 per
 share, allocated approximately as
 follows:
 70% of new warrants to "13.75%
 senior debentures"
 20% of new warrants to "discount
 debentures"
 10% of new warrants to "14.5%
 junior PIK debentures."
 -0- 3/13/92
 /CONTACT: Kenneth F. Cook, 314-982-1700, for INTERCO/
 (ISS) CO: INTERCO Incorporated ST: Missouri IN: REA SU: BCY


GK -- NY030 -- 7760 03/13/92 11:26 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 13, 1992
Words:722
Previous Article:DIVERSIFIED PHARMACEUTICAL SERVICES NAMES BLISSENBACH PRESIDENT
Next Article:FORD MOTOR COMPANY REPORTS U.S. SALES
Topics:


Related Articles
VOPLEX CORPORATION AND SUBSIDIARY FILE FIRST AMENDED JOINT PLAN OF REORGANIZATION UNDER CHAPTER 11
AMES FILES AMENDED PLAN OF REORGANIZATION
PHARMAKINETICS LABORATORIES, INC., ANNOUNCES APPROVAL OF REORGANIZATION PLAN
BANKRUPTCY COURT SETS HEARING DATE ON EL PASO ELECTRIC'S THIRD AMENDED DISCLOSURE STATEMENT
/C O R R E C T I O N -- TelePad Corporation/.
Fields Aircraft Spares, Inc. Announces Filing for Relief Under Chapter 11 of the Bankruptcy Code.
Kitty Hawk Announces Filing of Plan of Reorganization and Transaction Discussions.
Safety-Kleen Files Updated Joint Plan of Reorganization With Court.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters