Maxim Crane reaches agreement with unsecured creditors, files emergency motion to pay exit facility fee

By Jeff Pines

Washington, Nov. 8 - Maxim Crane Works said it recently reached an agreement in principle with its unsecured creditors and filed an emergency motion with the U.S. Bankruptcy Court for the Western District of Pennsylvania Friday to pay Goldman Sachs Credit Partners LP a $500,000 financing fee for a $325 million exit facility.

Once the issues over terms of the unsecured creditors' distributions are resolved, the plan will be fully consensual, Maxim said. The company will then file an amended disclosure statement and reorganization plan.

The latest plan on file calls for holders of the company's 9 3/8% senior secured notes due 2008 at the operating company level and holders of $55.62 million of 12 3/8% senior discount debentures due 2009 at the holding company level to get warrants to buy a 2% stake in the reorganized company. Recovery for these classes is put at 0.2% to 0.3%.

The secured lenders are supposed to get 98% to 100% of the reorganized company's equity.

The $500,000 fee will be credited toward the underwriting fee, the company, whose legal name is ACR Management LLC, said.

The exit facility would consist of a $50 million revolver, a $175 million first-priority five-year term loan, and a $100 million second priority seven-year term loan.

If approved, the interest rate will be a margin over Libor. There will also be a 50 basis point unused line fee and a 200 basis point underwriting fee.

Maxim filed the emergency motion because it wants to kick start the due diligence process. Its emergency request also asks permission to pay reasonable out-of-pocket expenses.

The confirmation hearing is still scheduled for Dec. 30.

Maxim, a Pittsburgh-based crane rental firm, filed for bankruptcy on June 14, 2004. Its Chapter 11 case number is 04-27848.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.