GEO Specialty's reorganization plan confirmed

By Jeff Pines

Washington, Dec. 21 - GEO Specialty Chemicals Inc.'s reorganization plan was confirmed by the U.S. Bankruptcy Court for the District of New Jersey, according to an order filed Monday.

Holders of the company's 10 1/8% senior subordinated notes will get an estimated recovery of 44% by exchanging their claims for the reorganized company's common stock, according to paperwork previously filed with the court. They are the only creditors who will receive stock if the reorganization plan is approved.

In the Monday hearing, the plan was modified to give holders of general unsecured claims, which is class 8 creditors, a distribution of 55 cents on the dollar, according to the order. GEO estimates there are $4.4 million of these claims.

The order also approved the proposed $125 million exit facility through a group led by Merrill Lynch.

Based in Cleveland, GEO Specialty Chemicals filed for bankruptcy on March 18, 2004. Its Chapter 11 case number is 04-19148.

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