GEO Specialty disclosure statement hearing set for Nov. 19

By Jeff Pines

Washington, Nov. 9 - A hearing on GEO Specialty Chemicals Inc.'s amended disclosure statement is scheduled for Nov. 19, according to paperwork filed with the U.S. Bankruptcy Court for the District of New Jersey.

The plan calls for the company's 10 1/8% senior subordinated noteholders to recover an estimated 44 cents on the dollar by exchanging their claims for stock in the reorganized GEO Specialty.

GEO Specialty's plan calls for a $125 million five-year exit facility with an interest rate of three-month Libor plus 850 basis points and a 100 basis point commitment fee.

The proposed lenders are Merrill Lynch Global Investment Services - Income Strategies Portfolio, Debt Strategies Fund Inc., Senior High Income Portfolio Inc., Master Senior Floating Rate Trust, Floating Rate Income Strategies Fund Inc., Floating Rate Income Strategies Fund II Inc., or the Merrill entities, Stanfield Capital, Airlie Opportunity Fund, Quadrangle Debt Recovery Income Fund Master Ltd., and QDRF Master Ltd.

At least one of the Merrill entities, or their affiliates, and Airlie Opportunity Fund own 10 1/8% notes.

Harrison, N.J.-based GEO Specialty filed for bankruptcy on March 18, 2004. Its Chapter 11 case number is 04-19148.

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