Boomerang Tube amended joint Chapter 11 plan now effective

By Mark Reccek

Bethlehem, Pa., Feb. 2 – Boomerang Tube LLC’s second amended joint Chapter 11 plan of reorganization became effective Feb. 2, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed by the court on Jan. 27.

As previously reported, treatment of creditors will include:

• Holders of debtor-in-possession ABL facility claims will receive a share of interests in the exit ABL facility if the ABL exit lenders are the same as the ABL DIP lenders or cash sufficient to pay in full all accrued, and collateralize all contingent, obligations and other amounts owed in accordance with the terms of the DIP ABL facility;

• Holders of DIP term facility claims and ABL facility claims will be paid in full in cash;

• Holders of term loan facility claims will receive their share of 100% of the new holding company common stock, 100% of new subordinated notes and payment in full in cash of all outstanding professional fees and expenses of the term agent and lenders;

• Holders of Heat Treat Line claims will receive either a class five note or a class five 5 1111(b) election note. The reorganized company will also abandon the SBI Heat Treat Line collateral;

• Holders of general unsecured claims will receive a share of $2.25 million in cash;

• Intercompany claims and intercompany interests will be left unaltered, except for those canceled and discharged as mutually agreed by the holder and the company;

• All existing equity securities will be canceled, and holders will receive no distribution; and

• Holders of administrative claims, allowed priority tax claims, allowed other secured claims and allowed other priority claims will have their claims reinstated or paid in full in cash.

Boomerang Tube is a St. Louis-based producer of oil country tubular goods and line pipe that filed for bankruptcy on June 9, 2015. The Chapter 11 case number is 15-11247.

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