Former Transport Industries out of bankruptcy after plan takes effect

By Caroline Salls

Pittsburgh, Jan. 4 - GW Ltd. 51, Inc., formerly Transport Industries, LP, emerged from Chapter 11 bankruptcy when its plan of liquidation took effect on Dec. 31, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Dec. 14.

As previously reported, the court approved the sale of the company's assets to first-lien lender acquisition vehicle Transportation 100, LLC in January 2009.

As a result of the sale, the only remaining obligation owed to the first-lien lenders is a $38.15 million 10% deficiency claim.

The first-lien lenders subsequently agreed to waive the deficiency claim if the company's second-lien lenders' vote to accept the plan.

Creditor treatment will include:

• Holders of administrative claims, priority tax claims, other priority claims, secured tax claims and other secured claims will recover 100% in cash;

• Holders of $38.15 million in first-lien credit agreement deficiency claims will receive no distribution;

• Holders of general unsecured claims will recover 0.6% through a share of a class 5 distribution;

• Holders of insurance claims will recover 100% in cash only from the proceeds of Transport's insurance policies; and

• Holders of equity interests will receive no distribution.

Transport Industries, a Dallas-based third-party provider of transportation services, filed for bankruptcy on Oct. 20, 2008. Its Chapter 11 case number is 08-12430.

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