Printer Friendly

MCORP FILES JOINT CHAPTER 11 PLANS OF REORGANIZATION

 DALLAS, April 14 /PRNewswire/-- MCorp announced today that on April 9, 1993 joint chapter 11 plans of reorganization had been filed by MCorp and its two subsidiaries, MCorp Financial, Inc. and MCorp Management, certain senior bondholders and the Unsecured Creditors Committee for the debtors. The plans were filed in the United States District Court for the Southern District of Texas, which is sitting as a bankruptcy court.
 The three plans generally provide for the liquidation of all three companies. With certain exceptions, the plans contemplate a strict priority pay-out, first to senior creditors and then to junior creditors. The plans also embody a settlement reached earlier between those certain senior bondholders and the Federal Deposit Insurance Corporation. The claims of all senior bondholders are reduced by a sufficient amount to allow for the payment to the FDIC, which the proponents of the plans believe will have a value to the debtors of under $34 million. The FDIC has stated that it intends to support the plans.
 These plans as filed on Friday are different from the agreement in principle that was announced on March 15, 1993 among the debtors and certain senior and junior bondholders. Certain conditions to that earlier agreement could not be accomplished, and thus, the plans as filed on Friday were submitted instead. Unlike the earlier agreement in principle, these plans do not provide for interim distributions to senior creditors prior to confirmation of the plans.
 Under the plans all existing shares of preferred and common stock of MCorp will be canceled, and the proponents of the plans believe it highly unlikely that any distributions will be made to any equity holders.
 The plans must be resubmitted to the creditors for a vote and approved by the U.S. District Court. The proponents of the plans believe they can be confirmed.
 -0- 04/14/93
 /CONTACT: Dwain Howard of MCorp, 214-939-5888/


CO: MCorp ST: Texas IN: SU: BCY

AH -- NY080 -- 5825 04/14/93 15:10 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 14, 1993
Words:330
Previous Article:UNO REPORTS EARNINGS FOR SECOND FISCAL QUARTER
Next Article:GM ELECTRO-MOTIVE SIGNS $700 MILLION CONTRACT WITH AUSTRALIA
Topics:


Related Articles
JUDGE DENIES FDIC VOTE ON MCORP CHAPTER 11 PLAN
MCORP REPORTS THIRD QUARTER FINANCIAL RESULTS
JUDGE DENIES CHAPTER 11 PLANS OF REORGANIZATION OF MCORP, MCORP FINANCIAL AND MCORP MANAGEMENT
MCORP REPORTS 1991 FINANCIAL RESULTS
MCORP REPORTS SECOND QUARTER FINANCIAL RESULTS
MCORP MAKES ANNOUNCEMENT
MCORP REPORTS THIRD QUARTER FINANCIAL RESULTS
BANKRUPTCY COURT GIVES GO-AHEAD FOR DISTRIBUTION OF NEW VALLEY JOINT PLAN OF REORGANIZATION
Formica Corporation Gains Court Approval to Proceed with Cerberus and Oaktree Investment Proposal.

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