Bush Industries second amended statement gives pre-petition credit facility claims 59% recovery

By Jeff Pines

Washington, June 23 - Bush Industries Inc.'s pre-petition credit facility claimants will get an estimated 59% recovery, according to the company's second amended disclosure statement filed Tuesday with the U.S. Bankruptcy Court for the Western District of New York.

The Jamestown, N.Y., furniture maker estimates there are $158 million in claims in this class.

The amended plan calls for these creditors to get a pro rata share of a $50 million term note and a $15 million term note to be issued by Bush's German affiliates and 1 million shares of common stock in a reorganized Bush Industries.

The official equity holders' committee opposes the reorganization plan and intends to object to the plan during the confirmation hearing. It believes the pre-petition facility claimholders will, in fact, get a greater than 100% recovery.

Bush filed for bankruptcy on March 31. Its Chapter 11 case number is 04-12295.

Correction

In a report in the May 25 issue of the Prospect News Distressed Debt Daily, it was incorrectly stated that the pre-petition credit facility claimholders would get an estimated 100% recovery.

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