PMI Group to complete standalone reorganization under Chapter 11 plan

By Caroline Salls

Pittsburgh, April 30 - PMI Group, Inc. filed its plan of reorganization and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The plan calls for a standalone reorganization of PMI, the disclosure statement said.

Treatment of creditors will include the following:

• Administrative expense claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• Holders of secured claims will either be paid in full in cash, receive the collateral securing the claims or receive another treatment that renders the claims unimpaired;

• Holders of general unsecured claims will receive a share of creditor cash and new common stock;

• Holders of senior note claims will receive a share of creditor cash and new common stock, as well as redistribution of cash and stock from the subordinated note indenture trustee in accordance with subordination provisions;

• Any distribution of creditor cash and new common stock for holders of subordinated note claims will be redistributed to holders of senior note claims;

• Holders of convenience claims will recover 90% of their claims in cash; and

• Holders of equity interests will receive no distribution.

The disclosure statement hearing is scheduled for June 5.

PMI is a Walnut Creek, Calif.-based provider of residential mortgage insurance and credit enhancement products. The company filed for bankruptcy on Nov. 23, 2011 under Chapter 11 case number 11-13730.

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