Fibermark files revised plan of reorganization reflecting settlement
27 Sep '05
3 min read
Silver Point will purchase the claims of AIG and Post for a negotiated amount. As a result of the purchase, AIG and Post will have no ownership interest in the reorganized company. AIG, Post and Silver Point have agreed to vote in favor of the company's revised Plan.
The potential causes of action held by unsecured creditors against AIG and Post and litigation rights held by FiberMark against AIG and Post will be released and extinguished under the revised Plan. As a result, the Plan will contain no mechanism for litigating any such causes of action. However, the plan does not abridge the rights of persons who hold individual causes of action, as defined in the plan.
AIG, Post and Silver Point will split the cost of the examiner's investigation three ways, subject to a cap totaling $1.75 million. The settlement relates to the treatment of unsecured claims under the company's Plan of Reorganization. Shares held by current stockholders will be cancelled, as detailed in the initial plan.
The previously approved disclosure statement has been modified to conform to the revised Plan and the company must now obtain Court approval to submit the Disclosure Statement and Plan to its creditors for voting. The company also expects the date for the confirmation hearing that will follow the voting process to be finalized shortly. The company continues to expect that it will have a confirmed Plan of Reorganization before the end of 2005.
FiberMark, headquartered in Brattleboro, Vt., is a leading producer of specialty fiber-based materials (paper, pressboard, coated cloth and nonwoven materials) meeting industrial and consumer needs worldwide in 11 facilities in northeastern United States and Europe.
Products include filter media for transportation and vacuum cleaner bags; base materials for specialty tapes, graphic arts applications, wallpaper, building materials and sandpaper; and cover/decorative materials for office and school supplies, publishing, printing and premium packaging.
marketing@alchempro.com
