Plan Confirmed in United Subcontractors, Inc. Case

The United States Bankruptcy Court for the District of Delaware has confirmed United Subcontractors, Inc.'s Amended Chapter 11 Plan of Reorganization.  The debtor filed for chapter 11 in March 2009.

From the debtor's press release:

As previously announced, the Company and holders of its first-lien loans due in 2012 and holders of the Company's second-lien loans due in 2013 have agreed on the terms of a financial restructuring, which reduces the Company's funded indebtedness by $314 million, via a conversion of debt to equity. Additionally, the Company noted that it has cash on hand in excess of $30 millionwhich, combined with the cash generated from ongoing operations, will be more than sufficient to run the business and fund normal business obligations. USI does not anticipate the need for any financing facilities in the near term.

First-lien lenders will receive approximately 96% of the New USI Holdings Common Stock; second-lien lenders will receive approximately 4% of the New USI Holdings Common Stock. The Plan was approved by an overwhelming margin of the first-lien lenders and the second-lien lenders. Additionally, under the terms of the Plan, General Unsecured Claims are unimpaired.