Judge indicates Wornick's plan of reorganization will gain court approval by early June 30 week

By Jennifer Lanning Drey

Portland, Ore., June 26 - The judge overseeing Wornick Co.'s Chapter 11 bankruptcy case indicated that the company's plan of reorganization would be approved upon receipt of a new copy reflecting revisions suggested during a Wednesday hearing at the U.S. Bankruptcy Court for the Southern District of Ohio, according to a source familiar with the company's bankruptcy case.

The revisions are being made and are unlikely to affect creditor treatment, according to the source.

As previously reported, creditor treatment under Wornick's most recently filed plan of reorganization includes:

• Holders of $12 million in administrative claims, $100,000 in priority tax claims, $35 million in DIP financing claims, $1 million in general unsecured claims and $1.7 million in other priority claims will recover 100% in cash;

• Holders of other secured claims will recover 100% either in cash, reinstatement of their claim or through the return of the collateral securing the claim;

• Holders of $140.22 million in senior secured note claims will recover 36% through their share of $50 million in cash;

• All intercompany claims will be adjusted, continued or discharged with the consent of the equity purchaser;

• Holders of $38 million in TWC note claims, holders of subordinated securities claims and holders of equity interests in non-surviving debtors and Wornick will not receive any distribution under the plan; and

• Holders of equity interests in surviving debtors will retain their interests.

Wornick, a Cincinnati-based food processing and packaging company, made a pre-packaged bankruptcy filing on Feb. 14. Its Chapter 11 case number is 08-10654.

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