Keystone Consolidated files reorganization plan

By Jeff Pines

Washington, Oct. 5 - Keystone Consolidated Industries Inc. said it filed its reorganization plan with the U.S. Bankruptcy Court for the Eastern District of Wisconsin.

The plan calls for unsecured creditors to get the reorganized company's common stock and its debtor-in-possession lender to get its preferred equity. The DIP lender, EWP Financial LLC is an affiliate of Contran Corp., Keystone's majority shareholder. With all of the preferred stock, EWP would have a 51% voting majority in the reorganized company.

After five years, the new preferred stock of the Dallas-based fencing and wire products company could be redeemed for cash if the majority of the common shareholders agree.

Liabilities from pre-petition secured creditors would be reinstated.

Sherman Wire Co. will be reorganized as a wholly-owned Keystone subsidiary.

The plan also calls for liquidating the following pre-petition subsidiaries: Sherman Wire of Caldwell, Inc.; J.L. Prescott Co. and DeSoto Environmental Management Inc.

Keystone filed for bankruptcy on Feb. 26, 2004. Its Chapter 11 case number is 04-22422.

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