Huffy files plan of reorganization

New York, July 19 - Huffy Corp. said it filed a proposed plan of reorganization and disclosure statement with the U.S. Bankruptcy Court for the Southern District of Ohio.

The proposal is based on negotiations with the China Export & Credit Insurance Corp. and Huffy's primary bicycle suppliers and the official unsecured creditors committee. It is in line with the agreement in principle announced on June 27.

Virtually all Huffy's unsecured debt will be exchanged for notes and new common stock.

China Export & Credit and the suppliers will receive 30% of the new common stock in class A shares and a $3 million note.

Other unsecured creditors will receive 70% of the new common stock in class B shares and a $9 million note.

The class A shares will elect a majority of the board of directors and by providing trade credit on favorable terms will have the ability to up to 51% of the new stock over five years.

Current stockholders will receive nothing.

The Miamisburg, Ohio, bicycle company said it is asking for approval of the disclosure statement at a hearing in mid-August. A confirmation hearing could be set for late September.

Huffy filed for bankruptcy on Oct. 20, 2004. Its Chapter 11 case number is 04-39148.

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