Tower Automotive files amended plan with recovery levels for claimants

By Jennifer Lanning Drey

Portland, Ore., June 7 - Tower Automotive Inc. filed an amended plan of reorganization and related disclosure statement that provide additional information on recovery levels for holders of R.J. Tower bondholder claims and R.J. Tower general unsecured claims Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

According to the disclosure statement for the amended plan of reorganization, holders of R.J. Tower bondholder claims will receive their share of the R.J. Tower primary recovery, which consists of 68% of the unsecured creditors trust assets.

The previous disclosure statement did not list the percentage.

In addition, these claim holders will receive their share of a secondary recovery, provided that these creditors do not receive any distribution until after all post-consummation trust senior claims have been paid in full.

The amended plan also specifies that holders of R.J. Tower general unsecured claims receive their share of the R.J. Tower primary recovery, which consists of 32% of the unsecured creditors trust assets.

Holders of R.J. Tower general unsecured claims will also receive their share of a secondary recovery, again, provided these creditors do not receive any distribution until after all post-consummation trust senior claims have been paid in full.

Creditor treatment

Treatment of creditors under the plan also includes:

• Holders of other priority claims and other secured claims will receive cash payment in full from a post-consummation trust priority account;

• Holders of second-lien claims will receive cash payment in full from the second-lien collateral account and the second-lien facility will be terminated;

• Holders of R.J. Tower bondholder claims will receive their share of the R.J. Tower primary recovery, which consists of 68% of the unsecured creditors trust assets, and a secondary recovery, provided that these creditors do not receive any distribution until after all post-consummation trust senior claims have been paid in full;

• R.J. Tower general unsecured claims will receive their share of the R.J. Tower primary recovery, which consists of 32% of the unsecured creditors trust assets, and a secondary recovery, provided that these creditors do not receive any distribution until after all post-consummation trust senior claims have been paid in full;

• Holders of 5.75% convertible senior note claims will receive a share of the class 6 recovery, provided that these creditors do not receive any distribution until after all post-consummation trust senior claims have been paid in full;

• Holders of general unsecured claims will receive a share of the class 7 recovery, provided that these creditors do not receive any distribution until after all post-consummation trust senior claims have been paid in full; and

• Holders of trust related claims, inter-company claims and equity interests will receive no distribution under the plan.

Tower, a Novi, Mich.-based auto parts maker, filed for bankruptcy on Feb. 1, 2005. Its Chapter 11 case number is 05-10578.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.