Motor Coach Industries International, Inc. has filed its first amended proposed plan of reorganization and accompanying disclosure statement. The disclosure statement expresses the debtors’ view that the plan would significantly deleverage the company’s balance sheet by paying $160 million of second lien obligations in full and discharging $480 million in pre-bankruptcy indebtedness. The plan would also reduce the company’s interest expense, thereby improving cash flow and generate $160 million in new capital through a rights offering.
The proposed plan provides that holders of Secured Third Lien Credit Agreement Claims will receive up to 33.6% of the value of their claims (but possibly significantly less) through the issuance of new equity and the opportunity to participate in the rights offering. Holders of general unsecured claims and holders of equity/interests in the Company will not receive anything under the plan and will have their claims/interests discharged.
A copy of the plan and disclosure statement can be downloaded here.
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