Wednesday, December 11, 2013

Bankruptcy Court Approves GMXR's First Amended Disclosure Statement

From 8-K filed today:

"The Restructuring will reduce the amount of the Debtors’ outstanding indebtedness by approximately $505,000,000 under their various indentures as follows: (i) satisfaction of $338,000,000.00 of the Senior Secured Notes through conversion of the Senior Secured Noteholders Secured Claim into all of the issued and outstanding shares of Reorganized GMXR Common Stock and approximately 61.40% of the New GMXR Interests; provided, that such Holders of Senior Secured Noteholder Secured Claims may hold a lower percentage of the New GMXR Interests to the extent that Holders of Allowed Senior Secured Noteholder Secured Claims demonstrate that such claims are Old and Cold Senior Secured Notes Claims; (ii) waiver of approximately $64,000,000.00 deficiency claim by the Holders of Senior Secured Notes if Class 4 votes to accept the Plan, or discharge of such deficiency claim with such claim being treated as a General Unsecured Claim if Class 4 votes to reject the Plan; (iii) discharge of the Second-Priority Notes in the approximate amount of $51,500,000, with such claims being treated as General Unsecured Claims under Class 4; (iv) discharge of the Convertible Notes in the approximate amount of $48,296,000, with such claims being treated as General Unsecured Claims under Class 4; and (v) discharge of the Old Senior Notes in the approximate amount of $1,970,000, with such claims being treated as General Unsecured Claims under Class 4."
Estimated recovery for senior secured is 83% according to the disclosure statement.

2 comments:

eah said...

What was that debt selling for just before the filing?

CP said...

It has sold for more than that. I think this was a disappointment to the investors who came in with new capital last November.