Amcast files plan of reorganization, secured creditors to recover 65%

By Caroline Salls

Pittsburgh, April 29 - Amcast Industrial Corp.'s secured creditors will receive 65% recovery through new term notes and all of the company's common stock, according to the plan of reorganization and disclosure statement filed Thursday with the U.S. Bankruptcy Court for the Southern District of Ohio.

The secured creditors have $108.35 million principal amount of claims made up of $67.87 million under a credit agreement, $9.92 million under a line of credit and $30.56 million of secured notes.

Amcast will continue operating after reorganization.

The company plans on $89 million of exit financing including a $20 million revolving credit facility, a $42 million senior secured first priority term loan A and a $27 million senior secured second priority term loan B.

Interest on the revolver and term loan A will be Libor plus 375 basis points and 12% on the term loan B, with 10% in cash and 2% in kind.

The facility will on Oct. 30, 2009 for the revolver and term loan A and April 30, 2010 for the term loan B.

The commitment fee is 1.5% and the unused portion fee is 75 basis points.

Creditors will be treated as follows:

*Creditors with administrative claims of $17.44 million will receive 100% recovery in cash;

*Creditors with priority tax claims of $792,000 will receive cash or deferred cash payments with 6% interest;

*Pre-bankruptcy secured claims of $108.35 million will get 65% recovery via the $42 million term loan A minus the funded amount of the debtor-in-possession facility, the $27 million term loan B and all of Amcast's new common stock;

*General unsecured claims creditors of $43.7 million will get 2% recovery in a lump sum cash payment.

General unsecured, key continuing vendor and general unsecured claimants are considered unimpaired and are the only classes entitled to vote on the plan.

Amcast, a Dayton, Ohio, manufacturer of plumbing and auto components, filed for Chapter 11 on Nov. 30, 2004. Its case number is 04-40504.

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