Glass Group Inc. has received judicial approval to send its amended Chapter 11 liquidation plan to creditors for voting. On 6 May 2006, Judge Kevin Gross of the US Bankruptcy Court in Wilmington, Dela…
Glass Group Inc. has received judicial approval to send its amended Chapter 11 liquidation plan to creditors for voting. On 6 May 2006, Judge Kevin Gross of the US Bankruptcy Court in Wilmington, Delaware, approved the company“s disclosure statement on plans to divide more than USD 7 million in cash among creditors. A bankruptcy judge“s approval is needed for a disclosure statement before a company operating under Chapter 11 protection can submit its plan to creditors for a vote. Under the proposed plan, Glass Group“s estate will distribute an estimated USD 7.6 million to USD 9.5 million to creditors. Unsecured creditors, owed between USD 19.9 million and USD 24.8 million, will recover between USD 0.15 to USD 0.367 per dollar. Glass Group said it will have between USD 3.9 million and USD 7.3 million to pay unsecured creditors. The creditors are also entitled to the proceeds, if any, from avoidance actions the company may pursue. Glass Group filed its plan after reaching a settlement with a group of minority shareholders, who will pay Glass Group USD 5 million for 12 hectares of New Jersey real estate. Among the minority shareholders is MAP V LLC, which had earlier loaned the privately held Glass Group USD 3.1 million. As part of the deal, Glass Group, its creditors and MAP V will release any claims they have against each other. Under the plan, Glass Group will wind down its business and all equity interests in the company will be canceled. Glass Group sold its assets in two separate deals in 2005. The company“s Flat River, Missouri, glassmaking facility was sold to India“s Gujarat Glass Ltd. for USD 15 million, while the core Millville, New Jersey, plant plus a stake in a Chinese joint venture went to Gerresheimer Group“s Kimble Glass Inc. subsidiary for USD 20 million. Proceeds from the two sales were used to pay the company“s debtor-in-possession lender CapitalSourceFinance LLC. Formerly known as Wheaton Glass Co., Glass Group employed more than 1,400 people at its plants in New Jersey and Missouri. Glass Group filed 28 February 2005, for Chapter 11 bankruptcy in the Wilmington bankruptcy court, listing debts at USD 69.2 million.