Aldrich files Chapter 11 plan of reorganization, disclosure statement

By Sarah Lizee

Olympia, Wash., Sept. 27 – Aldrich Pump LLC filed a Chapter 11 plan of reorganization and related disclosure statement on Friday with the U.S. Bankruptcy Court for the Western District of North Carolina.

On the effective date, Aldrich will deliver $540 million in cash to an asbestos trust, which will resolve all asbestos claims. The cash will consist of $495 million on account of asbestos claims liability and $45 million on account of the costs of administering the asbestos trust.

Aldrich will also issue a $5 million 5% one-year promissory note, payable by the reorganized debtors as co-obligors in favor of the asbestos trust.

Under the plan administrative claims, priority tax claims and secured claims will be paid in full in cash.

Holders of secured claims will be paid in full in cash or have their claims reinstated.

Holders of general unsecured claims will receive cash in an amount equal to their claims, plus post-petition interest.

Holders of current and future asbestos claims will be resolved and paid by the asbestos trust.

Intercompany claims and equity interests will be reinstated.

Davidson, N.C.-based Aldrich provides climate control solutions. The company filed bankruptcy on June 17, 2020 under Chapter 11 case number 20-30608.

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