Werner gets confirmation on liquidation plan

By Reshmi Basu

New York, Oct. 25 - Old Ladder Co. (DE), Inc., formerly Werner Holding Co. (DE), Inc., obtained confirmation of its plan of liquidation, according to Thursday order filed with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the plan is based on a sale-related stipulation, under which some of the bid sponsors who collectively purchased the company's assets were granted a $96.91 million second-lien claim against Werner.

Under the plan, the bid sponsors' claim, along with the company's other general unsecured claims, will be transferred to a liquidation trust and receive distributions from the proceeds of the trust assets based on a sharing mechanism contained in the sale stipulation.

The bid sponsors include BDCM Opportunity Fund II, LP and BDC Finance, LLC; Brencourt BD, LLC; Levine Leichtman Capital Partners III, LP; Milk Street Investors LLC; TCW Shared Opportunity Fund V, LP; TCW Shared Opportunity Fund IV, LP; TCW Shared Opportunity Fund IVB, LP; TCW/Drum Special Situation Partners, LLC; TCW Shared Opportunity Fund III, LP; Schultze Master Fund, Ltd.; Schultze Offshore Fund, Ltd.; Schultze Partners, LP; and Schultze Asset Management, LLC.

Plan creditor treatment

Treatment of creditors under the plan will include:

• Holders of other priority claims will receive full payment in cash from the company's wind-down amount. If these creditors agree to have any part of their claims paid through the liquidation trust, those claims will be paid before general unsecured claims;

• Holders of other secured claims will receive either the return of the collateral securing the claim or the proceeds from the sale of the collateral securing the claim;

• Holders of the second-lien bid sponsors claim will receive full payment in cash from the liquidation trust;

• Holders of general unsecured claims will receive their share of proceeds from the liquidation trust; and

• Equity interests will be canceled and holders will receive no distribution under the plan.

Werner, a Greenville, Pa., manufacturer and distributor of ladders, climbing equipment and ladder accessories, filed for bankruptcy on June 12, 2006. Its Chapter 11 case number is 06-10578.

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