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Court approves Maxim Crane Works' third disclosure statement
By Jeff Pines
Washington, Nov. 10 - The U.S. Bankruptcy Court for the Western District of Pennsylvania approved Maxim Crane Works' third amended disclosure statement, according to an order filed Wednesday.
Tuesday, the Pittsburgh-based crane rental firm filed a third amended disclosure statement and reorganization plan. The court had approved the second version, but the company decided to improve the recovery for two of the classes of claimants.
"We are optimistic Maxim Crane will emerge from Chapter 11 early next year with a significantly de-leveraged capital structure, positive cash flow and a well-structured financing package that will allow the company to grow and prosper in the coming years," said Arthur Innamorato, chief executive officer. Maxim's legal name is ACR Management LLC.
Maxim also said the court has approved its request to suspend a marketing process that the court had mandated at a hearing on Oct. 18. The creditors' committee joined the company in making that request because it now supports the plan as the best alternative for all parties.
Maxim's pre-petition senior lenders will get an estimated recovery of 90% by getting 88% to 90% of the reorganized company's common stock. Its term B pre-petition lenders will get an estimated recovery of 43.2% by receiving 10% to 12% of the common stock and warrants to buy stock. Holders of the old operating company's notes will get an estimated recovery of 1% by receiving warrants to buy a 2% stake in the company.
Votes are due by Dec. 20.
The confirmation hearing for the reorganization plan is still scheduled for Dec. 30.
Maxim filed for bankruptcy on June 14. Its Chapter 11 case number is 04-27848.
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