Truvo Subsidiary: effective date of reorganization plan is Tuesday

By Lisa Kerner

Charlotte, N.C., Nov. 30 - Truvo Subsidiary Corp.'s second amended joint plan of reorganization became effective Tuesday, Nov. 30, according to filing with the U.S. Bankruptcy Court for the Southern District of New York.

The court confirmed the plan on Oct. 26.

As previously reported, Truvo filed an amended plan incorporating changes agreed to by the company's official committee of unsecured creditors and a coordinating committee of senior lenders.

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.

Truvo, an integrated multinational provider of local search and advertising services, filed for bankruptcy on July 1 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 10-13515.

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