Truvo Subsidiary inks agreement in principle to make plan changes

By Caroline Salls

Pittsburgh, Oct. 1 - Truvo Subsidiary Corp. plans to file an amended plan of reorganization by noon ET on Tuesday to incorporate an agreement in principle with the company's official committee of unsecured creditors and a coordinating committee of senior lenders, according to a letter filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

Under the agreement in principle, the plan changes will include:

• An increase in the high-yield noteholder cash distribution to €$20 million;

• The noteholder warrants will be increased to junior creditor Equityco warrants, entitling the noteholders to subscribe to shares in Equityco in an amount indirectly representing 20% of Holdco shares;

• In addition to their share of the cash distribution and warrants, each high-yield noteholder will receive cash equal to 7% of U.S. tax proceeds if those proceeds are payable as a prepayment under a new senior creditor agreement; and

• The distribution record date for high-yield note claims will be the plan effective date.

The creditors committee has agreed to support the plan and terminate all plan-related lawsuits.

According to the filing, the company plans to request court approval of solicitation procedures and a disclosure statement supplement at an Oct. 6 hearing currently scheduled to be a plan confirmation hearing.

Truvo, an integrated multinational provider of local search and advertising services, filed for bankruptcy on July 1. The Chapter 11 case number is 10-13513.

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