Bloomberg Update: Although Ampex Corp. is hoping the bankruptcy court will approve the Chapter 11 plan at a July 31 confirmation hearing, for safety's sake it's asking for an extension until Oct. 26 of the exclusive right to propose a reorganization. The so-called exclusivity motion isn't without purpose, given how the creditor's committee is lobbying for the ability to propose a competing plan.
The Ampex plan, negotiated before the March 30 Chapter 11 filing, would distribute cash, new notes, and new stock to the senior noteholders and to Hillside Capital Inc., the former affiliate that's one of the plan proponents. The senior noteholders are to receive new senior secured notes. Trade suppliers would be paid in full for claims less than $5,000.
Otherwise, unsecured creditors are to recover an estimated 10 percent.
Ampex [allegedly] needed reorganization in the face of $58 million in underfunded pension liability. The petition listed assets of $26.5 million and debt totaling $133.6 million. Formed in 1944, Redwood City, California-based Ampex also developed technology for slow motion instant replay. The case is In re Ampex Corp., 08-11094, U.S. Bankruptcy Court, Southern District New York (Manhattan). |
