US television glass manufacturer Techneglas Inc. gained court approval for its first amended reorganization plan on 6 October 2005, over a year after it filed for Chapter 11 protection.
Judge John Ho…
US television glass manufacturer Techneglas Inc. gained court approval for its first amended reorganization plan on 6 October 2005, over a year after it filed for Chapter 11 protection. Judge John Hoffman Jr. of the US Bankruptcy Court for the Southern District of Ohio signed off on the plan, which involves the liquidation of certain assets and the reorganization of Techneglas“ affiliates Nippon Electric Glass Ohio Inc. and Nippon Electric Glass America Inc. Techneglas and NEG America are subsidiaries of Japan“s Nippon Electric Glass Co. Ltd. The Japanese company has almost USD 5 billion in assets. NEG Ohio is majority-owned by NEG. Court papers revealed that the plan includes five main components. The first part gives Techneglas the option to either create a post-confirmation firm for the liquidation of non-real estate assets or liquidate those assets through the reorganized company. The second part sets up the so-called NEG Distribution NewCo, which will hold the assets of the aforementioned firm. The third part establishes a real estate group to which Techneglas will transfer its unsold real estate assets, while the last two parts consist of the continuation and reorganization of both NEG Ohio and NEG America. Distributions are divided into three separate charts between Techneglas, NEG Ohio and NEG America. Unsecured creditors of Techneglas, due about USD 23.63 million, are set for recoveries between 31% and 63.5%, while the Japan-based parent, holding about USD 300.4 million in claims, is set to receive an estimated 15% to 20% of the sum it is owed. NEG Ohio“s unsecured creditors, due about USD 3.84 million, should recover 100%, while about 13% of a USD 7.61 million claim held by the NEG parent will be repaid. The USD 5.54 million NEG claim against NEG America, meanwhile, is also set for a 13% recovery. A USD 34.5 million claim by the Pension Benefit Guaranty Corp., totaled against all three bankrupt units, is estimated for a 100% recovery in the aggregate. Columbus, Ohio-based Techneglas filed for Chapter 11 on 1 September 2004, a month after closing its face-plate-making plant, when it was unable to pay back over USD 50 million owed to its 20 largest creditors.