May 7, 2006 -- Aluminum diecaster J.L. French Automotive Castings Inc. has amended its bankruptcy reorganization plan, aiming to address concerns and dissatisfaction among its creditors and second-lien agent with the original terms of reorganization.
J.L. French, Sheboygan, WI, produces high-pressure aluminum diecastings for automotive components and assemblies. It filed for Chapter 11 creditor protection in February, having pre-arranged many of the conditions of its reorganization with many of its debt-holders.
In March the federal court overseeing the reorganization approved the payments to creditors anticipated by the pre-filing agreements.
The amended plan incorporates terms of a settlement between J.L. French, its unsecured creditors, and the second-lien agent, and provides, among other things, for a distribution of warrants to holders of the 11.5% subordinated notes, and a distribution of certain potential litigation recoveries to general unsecured claims holders and the note holders. These distributions will be in addition to the recoveries contemplated by the Plan of Reorganization as originally filed, according to J.L. French's statement.
"The company believes that the settlement is a major step forward in staying on course to emerge from Chapter 11 in the second quarter," J.L. French stated.
A federal bankruptcy court hearing on the amended plan is set for May.