Las Vegas Monorail amends plan treatment for four creditor classes

By Caroline Salls

Pittsburgh, April 28 - Las Vegas Monorail Co. filed an amended plan of reorganization and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of Nevada to change the proposed treatment of several creditor classes.

Treatment of creditors under the amended plan 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 the lesser of 80% of their claims or a share of $175,000. Under the original plan, these creditors were slated to receive a share of $175,000;

• Holders of first-tier bond secured claims will receive $15 million of 10% cash pay senior notes due June 30, 2019 and $19.5 million of 10% pay-in-kind capital expenditure notes due 2019, compared with a $7.5 million amended and restated first-tier note that would have been issued under the original plan;

• Holders of first-tier unsecured bond claims will receive $10 million of 8.315% pay-in-kind capital appreciation notes, and their first-tier bonds will be cancelled. Under the original plan, they were scheduled to receive an $11 million additional payment obligation note;

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

• Director claims will be impaired. Under the initial plan, holders of these claims would have participated in first-tier bond claims under an amended and restated financing arrangement.

Under the amended plan, the financing arrangement will be extinguished, and the director will not receive any property other than funds remaining in an indemnification account; and

• Holders of subordinated claims will receive no distribution.

The disclosure statement hearing is scheduled for May 25 and the plan confirmation hearing for July 29.

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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