A Plan of Reorganization filed in U.S. Bankruptcy Court in the District of Delaware calls for U.S. Concrete to reduce subordinated debt by approximately $272 million and gain approval of a J.P. Morgan-led $80 million debtor-in-possession credit facility to fund operations during restructuring
Source: U.S. Concrete Inc., Houston
A Plan of Reorganization filed in U.S. Bankruptcy Court in the District of Delaware calls for U.S. Concrete to reduce subordinated debt by approximately $272 million and gain approval of a J.P. Morgan-led $80 million debtor-in-possession credit facility to fund operations during restructuring. The company is also seeking approval to pay suppliers in the ordinary course, continue customer programs, and maintain employee compensation and benefits.
We have taken steps to minimize the impact of this process on our suppliers, customers and employees, and intend to move forward as expeditiously as possible to complete the restructuring,” said U.S. Concrete CEO Michael Harlan, adding that the 75- to 90-day reorganization should position the company as a stronger competitor in its markets.
The Plan provides equity in the reorganized company for holders of 8.325 percent Senior Subordinated Notes due 2014, plus warrants for existing shareholders to acquire a 15 percent equity stake, with exercise prices to be set based upon achievement of certain valuation hurdles. U.S. Concrete is requesting a hearing to approve the disclosure statement related to the Plan and set an expedited schedule for plan approval and emergence from Chapter 11.