EnviroSolutions' plan of reorganization confirmed by bankruptcy court

By Lisa Kerner

Charlotte, N.C., July 22 - EnviroSolutions Holdings Inc.'s plan of reorganization was confirmed, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, EnviroSolutions was granted approval to amend 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.

Under the modified 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.

Creditor treatment

Prospect News previously reported that also 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; and

• 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.

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

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