Key Plastics announces results of noteholder treatment election

By Caroline Salls

Pittsburgh, Jan. 22 - Key Plastics LLC announced the results of its noteholder treatment election, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, holders of the company's $115 million of 11¾% senior notes due 2013 had three treatment options under the company's pre-packaged plan of reorganization.

Under the first option, noteholders will receive new Key Plastics equity but not participate in the company's rights offering; under the second option, noteholders will receive new equity and subscribe for additional equity by participating in the rights offering; and under the third option, noteholders will receive cash equal to 16% of the face value of the notes.

According to Thursday's filing, holders of $9 million of the notes elected to receive just new equity, holders of $59.87 million elected to receive new equity and participate in the rights offering, and holders of $46.13 million of the notes elected to receive cash.

Noteholders who choose the second option will be entitled to subscribe for an additional 35% of new Key Plastics equity at a price of $57.15 per share under the $20 million rights offering.

Wayzata Investment Partners LLC has agreed to backstop the rights offering in exchange for a fee of 2% of the backstop commitment.

Key Plastics, a Northville, Mich., supplier of highly engineered and value-added plastic components and functional assemblies to original equipment manufacturers of light vehicles, filed for bankruptcy on Dec. 15. Its Chapter 11 case number is 08-13324.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.