Las Vegas Monorail files plan of reorganization, disclosure statement

By Caroline Salls

Pittsburgh, Aug. 18 - Las Vegas Monorail Co. filed a plan of reorganization and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the District of Las Vegas.

The company said it will restructure its financing agreement and first-tier note under the plan.

Treatment of creditors will include:

• Holders of priority claims will be paid in full in cash;

• Holders of other secured claims will be paid in full in cash or otherwise be left unimpaired;

• Holders of general unsecured claims will receive a share of $175,000;

• Holders of first-tier bond secured claims will receive a $7.5 million amended and restated first-tier note;

• Holders of first-tier bond unsecured claims will receive an $11 million additional payment obligation note;

• Holders of second-tier bond claims and third-tier bond claims will receive no distribution;

• Holders of director claims will participate in first-tier bond claims under an amended and restated financing arrangement; and

• Holders of subordinated claims will receive no distribution.

The company, a Las Vegas non-profit monorail operator, filed for bankruptcy on Jan. 13, 2010. The Chapter 11 case number is 10-10464.

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