EnviroSolutions asks to modify plan to up distributions to two classes

By Jennifer Lanning Drey

Portland, Ore., July 2 - EnviroSolutions Holdings Inc. requested court approval to modify its plan of reorganization to more than double the cash distribution to holders of other unsecured claims and add a recovery for the only holder of a senior subordinated note claim, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the amended plan, the total cash distribution for holders of other unsecured claims would be increased to $2.4 million from $1 million under the prior plan.

Additionally, EnviroSolutions said it wants to amend its plan of reorganization so that Northwestern Mutual Life Insurance Co., the only holder of a senior subordinated note claim, would receive warrants to purchase up to 5% of the reorganized company.

Under EnviroSolutions' prior plan, Northwestern Mutual was to receive no distribution.

The warrants contemplated in the amended plan would have a three-year term and be exercisable only upon a liquidity event, according to the filing.

EnviroSolutions said the modifications were the result of extensive arms-length negotiations, document sharing and analyses.

A hearing is scheduled for July 7.

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

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