Wolverine Tube, noteholders amend plan support termination conditions

By Caroline Salls

Pittsburgh, March 24 - Wolverine Tube, Inc. has amended the plan of reorganization support agreement with its noteholders to change the agreement termination provisions, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the amendment, the support agreement can be terminated upon five days' written notice to the company and the other supporting noteholders following the occurrence of several events, including:

• If the company's disclosure statement is not approved by April 15;

• If the company does not launch the plan vote solicitation within nine days of the disclosure statement order;

• If the plan is not confirmed by June 6 and does not take effect within 15 days of confirmation;

• If corporate governance documents do not comply with agreement terms within 10 days of the voting deadline;

• If the company discloses any new information that would impact the noteholders' decision to vote in favor of the plan;

• If any motion is filed by Wolverine Tube to convert or dismiss its bankruptcy case or appoint an examiner or trustee, or if the court approves case dismissal or conversion or examiner or trustee appointment;

• If the company or a supporting noteholder receives an offer for an alternate transaction involving a sale of substantially all of the company's assets or equity interests under which the notes would be repaid in full;

• If Wolverine Tube does not enter into an acceptable memorandum of understanding with the Pension Benefit Guaranty Corp. within 10 days of the plan voting deadline; and

• If the amount of allowed general unsecured claims exceeds a specified cap.

If all of the support agreement conditions are met, the agreement would terminate on April 30, provided, however, that the termination date would be extended to June 30 if the company signs the PBGC memorandum of understanding by April 15.

Cash collateral extension

In addition, the supporting noteholders have agreed to extend the termination date for the company's cash collateral use to the earliest of June 30, 30 days from the automatic support agreement termination date or five days from the date of a termination prompted by any of the noteholders' conditions.

The cash collateral use was scheduled to expire on March 30.

Wolverine Tube is based in Huntsville, Ala., and makes copper and copper alloy tube, fabricated products and metal joining products. The company filed for bankruptcy on Nov. 1. The Chapter 11 case number is 10-13522.

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