Raser Technologies amends plan treatment ahead of statement hearing

By Caroline Salls

Pittsburgh, July 25 - Raser Technologies, Inc. filed an amended plan of reorganization and related disclosure statement Friday with the U.S. Bankruptcy Court for the District of Delaware that amends the proposed distribution for several creditor classes.

As previously reported, the plan calls for the deleveraging of the company's balance sheet and the sale of 100% of the equity in the reorganized debtors.

A Litigation LLC and creditor trust will be created to prosecute causes of action, the proceeds of which will be shared with creditors.

Treatment of creditors will include:

• Holders of Thermo No. 1 secured claims will receive releases and indemnification and will release and waive all claims against the Raser debtors and liens against all assets.

Under the previous version of the plan, these creditors were slated to be paid in accordance with a Thermo lenders settlement;

• Holders of Raser Power secured claims will receive either a new promissory note or the collateral securing their claims;

• Holders of Lightning Dock secured claims will receive the collateral securing their claims. Under the original plan, these creditors were scheduled to receive the same treatment as the Raser Power secured claimants;

• Other secured claims will be paid in full or holders will receive the collateral securing the claim. Under the original plan, these creditors would have been paid in full or had their claims reinstated;

• Holders of general unsecured claims against Raser, the Thermo No. 1 project entity, the Lightning Dock project entity and non-ML subsidiary debtors will receive a share of creditor trust membership interests and class B membership interests in the Litigation LLC;

• Holders of general unsecured claims against the ML debtors will receive a reorganized Raser note and a release and waiver of all causes of action against Merrill Lynch.

Under the original plan, these creditors would have received the note and cash equal to 50% of the difference of net Raser proceeds less $15 million;

• Holders of convenience class claims will receive a share of a convenience class fund;

• Holders of opt-out unsecured claims, subordinated securities law claims, Raser interests and subsidiary debtor interests will receive no distribution; and

• Holders of cash election claims will recover 1% in cash.

The disclosure statement hearing is scheduled for July 26.

Provo, Utah-based Raser is a technology licensing and development company focused on geothermal power generation. The company filed for bankruptcy on April 29, and its Chapter 11 case number is 11-11315.

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