Venture Holdings files reorganization plan; bank lenders receive notes, equity

By Peter Heap

New York, Sept. 26 - Venture Holdings Co. LLC filed its bankruptcy reorganization plan and proposes giving bank lenders new senior and junior notes and preferred equity of the reorganization company.

Company founder Larry J. Winget and his affiliates, who currently own Venture, will receive the common equity of the reorganized company.

Noteholders will receive warrants.

Under the plan, filed with the United States Bankruptcy Court for the Eastern District of Michigan, Southern Division, bank lenders will receive:

* Senior notes to the value of the bank claims less $225 million, or an estimated $195 million;

* $50 million of junior notes;

* $175 million of preferred membership interests in the new company, to be called Venture Cos., LLC. The interests will have voting rights and the right to appoint directors; and

* Accrued interest in cash plus cash equivalent to 0.5% of the face amount of the senior notes, junior notes and preferred membership interests.

General unsecured claims will receive the trust assets from the creditors trust including warrants for common membership interests. Included in this group are holders of Venture's 9½% senior notes due 2005, 11% senior notes due 2007 and 12% senior subordinated notes due 2009. These issues total $455 million.

The plan envisages that Venture will obtain an $85 million exit financing facility, which will be senior to the new notes to be issued to the existing bank lenders.

Venture, a Fraser, Mich. manufacturer and supplier of auto components, filed for Chapter 11 on March 28.

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