Smarte Carte plan of reorganization confirmed

By Caroline Salls

Pittsburgh, April 26 - Smarte Carte Corp. received confirmation for its plan of reorganization from the U.S. Bankruptcy Court for the District of Delaware, according to an order filed with the court Tuesday.

The confirmation follows a hearing that began April 4 and ended April 26.

Under the plan, Smarte Carte's bank lenders will receive 78.3% of the stock in the reorganized company and holders of the senior notes will receive 21.7%. But bank creditor HVB will be paid in full in cash.

The plan includes a $20 million exit facility, increased from the $10 million originally planned. Black Diamond Commercial Finance, LLC and General Electric Capital Corp. are providing the facility.

Smarte Carte's parent, SMC Holdings Corp. will merge with SC Corp. SC Corp. will be the surviving company.

Smarte Carte, a St. Paul, Minn., airport cart operator, made a prepackaged Chapter 11 filing on Feb. 11. Its case number is 05-10395.

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