Belvedere submits plan of reorganization changes; decision by July 16

By Jennifer Chiou

New York, May 18 - Belvedere SA announced the delivery of its plan of reorganization after the Court of Commerce of Dijon previously extended the window to present requested clarifications.

A decision on the plan is slated for sometime before July 16, which is the deadline of the company's second six-month period in connection with the plan.

Belvedere had until Sept. 30 to answer the prior request that its accountants provide certain clarifications and explanations for the plan.

On April 22, the company said that its directors presented its previously announced plan to emerge from reorganization. The plan includes a €550 million total net debt reimbursement over a period of 10 years.

As already reported, it is conditioned on the operational cash flow of the company as well as non-strategic agreements pertaining to the selling of shares between shareholders and brands.

In other news, on April 20, Belvedere announced that it is contesting creditor claims brought by the Bank of New York Mellon, which has not responded to the objection but was given 30 days to do so.

According to a prior communication to the president of the Court of Dijon, the company said that a letter from Sonier and Associates indicated the implementation of secondary procedures in Poland.

On April 16, the company said its plan of reorganization that was put into the courts on July 26, 2005 blocks creditor claims against the company and its MBRI French affiliate as well as its six Polish affiliates.

Belvedere previously reiterated that the creditors are not permitted to go through with any claims in Poland against the affiliates in that country. The company said it condemns any plans for a case in Poland and restated that these claims are inadmissible.

On March 16, the company said that its creditor trustee is notifying holders of the company's €375 million of floating-rate notes that their reorganization proceeding proofs of claim were not allowable because they did not comply with French law. As a result, the noteholders' claims will not be taken into consideration.

Based in Beaune, France, Belvedere is a producer and distributor of alcoholic and non-alcoholic beverages.

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