Amcast Industrial plan of reorganization takes effect, distributions complete

By Caroline Salls

Pittsburgh, Oct. 8 - Amcast Industrial Corp. said its plan of reorganization has taken effect, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Indiana.

The company asked the court to enter a final decree closing its Chapter 11 bankruptcy case. Amcast said it has completed all plan distributions.

The plan was confirmed on April 10, 2007.

As previously reported, the plan incorporated a settlement and compromise of claims between the company, its official committee of unsecured creditors and its lenders.

The settled claims include claims asserted in an adversary proceeding, any claim for recharacterization of subordination of the lenders' claims, any claim for disgorgement of payments previously made to the lenders and any claims relating to the extent, validity and priority of the lenders' liens.

As part of the settlement, of the cash on hand on which the lenders claim a lien, $7 million was distributed to the term B lenders, $2 million to general unsecured creditors and $2 million to fund prosecution of the estates' claims against General Motors.

The remaining cash on hand was used to pay administrative expense, priority and priority tax claims, the fees and expenses incurred in winding down the estates after plan confirmation and pursuing the GM causes of action and any other claims against third parties.

Treatment of creditors included:

• Administrative, priority and priority tax claims were paid in full using cash on hand;

• Secured claims of revolving lenders and term loan A lenders were already paid in full;

• Holders of $52.91 million in secured claims of the term loan B lenders received $7 million from cash on hand plus the net proceeds from sale/collection of all remaining assets;

• Holders of general unsecured claims received their share of $2 million from cash on hand;

• To the extent allowed and not subordinated, holders of GM's re-pricing claim and unsecured claim received the same treatment as general unsecured creditors;

• Holders of other secured claims were paid in full by receiving either the proceeds from the sale of the collateral or the collateral itself;

• Intercompany claims were extinguished; and

• Equity interests were cancelled and holders received no distribution.

Amcast is a Fremont, Ind.-based manufacturer and distributor of automotive products. It filed for bankruptcy on Dec. 5, 2005. Its Chapter 11 case number is 05-33322.

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