General Chemical completes reorganization

By Jeff Pines

Washington, April 1 - General Chemical Industrial Products Inc. said it completed its Chapter 11 reorganization. Its first amended reorganization plan became effective March 31.

The Parsippany, N.J.-based company's total debt is now $52 million compared with its pre-petition debt of $158 million.

In addition, Harbert Distressed Investment Master Fund Ltd. is providing the soda ash and calcium chloride producer with a new $45 million term loan agreement and a new $17.5 million revolver.

Harbert also funded a subscription for 94% of the company's new convertible preferred stock. Assuming full conversion, it would have a 63.6% stake in the company.

Pre-petition senior subordinated noteholders will get 98.5% of the reorganized company's common stock and 6% of the new preferred stock, which would represent about 35.9% of the common stock if all of the preferred shares are converted. They also will get warrants to buy common stock.

Common stock holders of the pre-petition company will get 1.5% of the reorganized company's common stock, or 0.5% if all of the preferred shares are converted.

General Chemical's Chapter 11 case number is 03-48772.

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