GPX International Tire statement approved; plan hearing July 21

By Caroline Salls

Pittsburgh, June 4 - GPX International Tire Corp. received court approval of the disclosure statement for its plan of liquidation, according to a Friday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

The plan confirmation hearing is scheduled for July 21.

As previously reported, the company sold substantially all of its operating assets in three separate transactions before filing the plan.

Under the plan, GPX said its assets will continue to be liquidated, and sale proceeds will be distributed to creditors.

Treatment of creditors will include:

• Holders of administrative claims, professional fee claims, priority tax claims and other priority claims will be paid in full in cash;

• Holders of secured parties' claims will recover 53.5% in accordance with a settlement agreement;

• Holders of other secured claims will either be paid in full or will receive the collateral securing the claim;

• Holders of general unsecured claims will recover 20% to 53.2% through a share of a plan fund; and

• Holders of equity interests will be paid only if classes of senior claims are paid in full. The interest holders are not expected to receive a distribution.

GPX makes specialty off-the-road tires for the agricultural, construction, materials handling and transportation industries and is based in Malden, Mass. The company filed for bankruptcy on Oct. 27, 2009. Its Chapter 11 case number is 09-20170.

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