EnviroSolutions' disclosure statement approved; plan hearing July 21

By Lisa Kerner

Charlotte, N.C., May 5 - EnviroSolutions Holdings Inc.'s disclosure statement was approved, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The plan confirmation hearing will be held on July 21.

EnviroSolutions made a pre-packaged Chapter 11 bankruptcy filing on March 10.

Creditor treatment

As previously reported under the proposed plan:

• Senior loan obligations will be exchanged for new term loans, including an $85 million secured term loan facility, and equity in the reorganized holding company;

• The company's existing common and preferred stock will be cancelled on the plan effective date, and interest holders will receive no distribution;

• Holders of second-lien note claims will receive a share of a $1.2 million to $1.4 million cash distribution pool;

• Holders of some unsecured claims related primarily to trade expenses with ongoing vendors of goods and suppliers of services will have their allowed claims reinstated;

• Holders of other unsecured claims will receive a share of a $1 million cash distribution; and

• Holders of senior subordinated notes will receive no distribution.

EnviroSolutions is a Manassas, Va., integrated waste management company. Its Chapter 11 case number is 10-11236.

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