Sherwin Alumina modified joint Chapter 11 plan effective as of Feb. 27

By Caroline Salls

Pittsburgh, Feb. 28 – Sherwin Alumina Co., LLC’s modified joint Chapter 11 plan took effect on Monday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan, which was confirmed on Feb. 17, incorporates the terms of a global settlement and Sherwin’s asset sale transaction. It also implements an arrangement that addresses the company’s environmental liabilities.

Treatment of creditors under the plan will include the following:

• Priority claims will be paid in full in cash;

• “Other” secured claims will either be paid in full in cash or reinstated;

• Holders of pre-bankruptcy secured credit facility claims will either receive consideration provided in the purchase agreement or a share of the net sale proceeds until the claims are paid in full;

• Holders of general unsecured claims will receive either a share of a global settlement distribution or will receive no distribution, depending on whether they voted to accept the plan;

• Pension Benefit Guaranty Corp. unsecured claims will be satisfied through assumption of the pension plans by a buyer affiliate; and

• Holders of interests, intercompany claims and subordinated claims will receive no distribution.

Sherwin, a Gregory, Texas-based alumina producer, filed for bankruptcy on Jan. 11, 2016. The Chapter 11 case number is 16-20012.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.