Formica Corp. files plan of reorganization
Formica's plan reflects agreement on the principal terms of a consensual reorganization among the company, its senior-secured lenders and the official committee of Formica's unsecured creditors.
Under the plan of reorganization, which is subject to creditor approval, confirmation by the bankruptcy court and certain other conditions, Formica will emerge with a significantly stronger balance sheet and less debt. The company believes that the process should conclude no later than the first quarter of 2004, and that Formica will emerge from Chapter 11 with approximately $160 million of consolidated debt compared to more than $540 million in debt at the time of its Chapter 11 filing.
Upon approval of the disclosure statement, Formica will commence solicitation of votes for approval of the plan from those of its pre-petition creditors who are entitled to vote on the plan.