GenTek files second amended plan, confirmation hearing set for Aug. 25

By Carlise Newman

Chicago, Aug. 22 - GenTek Inc. filed its second amended plan of reorganization Thursday with the U.S. Bankruptcy Court for the District of Delaware and a confirmation hearing has been set for Aug. 25.

Under the plan, bank lenders with $506.1 million in claims will receive $60 million in cash, less any adequate protection payments received by the lenders after Aug.1 from the proceeds of any tax refund and any adequate protection payments received after Sept. 30; $216.5 million of new senior term notes; 8,126,177 shares of new common stock; and shares of new stock and warrants equal to the dissenting bondholder holdback.

The $5.7 million secured claim of GenTek against Noma Co. arising under the Canadian Credit Agreement and the related indemnity claim of The Bank of Nova Scotia against GenTek will be paid in full.

The $69 million tranche B lender secured claims will be acquired by GenTek in exchange for $33.5 million of new senior term notes and 1,256,980 shares of new common stock.

General unsecured creditors, with $35 million in claims, can choose the equity or cash option. Under the equity option, unsecured creditors will receive 174,365 shares of new common stock, tranche A warrants to purchase 331,628 shares of new common stock and tranche B warrants to purchase 85,471 shares of new common stock

Under the cash option, unsecured creditors will receive payments in cash of 6% of the allowed amount of the claim, and will share $5 million in cash.

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