Barzel amended liquidation plan approved, disbursing agent named

By Jim Witters

Wilmington, Del., Sept. 8 - Barzel Industries Inc. creditors approved the company's plan of liquidation, according to documents filed Thursday in U.S. Bankruptcy Court for the District of Delaware.

Day Seckler LLP was designated as the disbursing agent.

In the balloting, no votes were cast by holders of miscellaneous secured claims and that class is deemed to have accepted the plan; two of two holders of pre-petition note holders secured claims voted to accept the plan; and 88 of 92 votes of holders of general unsecured claims voted to accept the plan.

No objections to confirmation were filed.

Treatment of creditors includes:

• Holders of administrative claims, priority non-tax claims and priority tax claims will be paid in full in cash;

• Holders of miscellaneous secured claims will receive cash equal to the lesser of the amount of the claim or the value of the property securing the claim or they will receive the property securing the claim;

• Pre-petition secured note holders will receive any cash remaining with the disbursing agent within 15 days of the plan effective date after payment of priority claims and the funding of a wind-down reserve and will receive any cash remaining after a final case decree after payment of fees and expenses. J.P. Morgan Securities LLC has an allowed claim of $230.7 million and CIBC World Markets Corp. has an allowed claim of $115.3 million.

• Holders of general unsecured claims, other than deficiency claims, will share Barzel unsecured claims cash;

• Holders of inter-company claims, insider claims and claims of the company's Canadian entities will receive no distribution; and

• Equity interests will be canceled, and shareholders will not retain their ownership interests.

Barzel sold substantially all its assets in November 2009 to Chriscott USA Inc. and 4513614 Canada Inc. for $75 million.

Barzel Industries is a Norwood, Mass.-based operator of a network of manufacturing, processing and distribution facilities in the United States and Canada. The company filed for bankruptcy on Sept. 15, 2009. The Chapter 11 case number is 09-13204.

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