The U.S. Bankruptcy Court approved Altegrity’s Joint Plan of Reorganization.
According to the documents filed with the Court, “Among other things, the Plan: (i) sets aside $1.25 million in cash to be distributed to the holders of the Operating Debtors General Unsecured Claims in Class A7-b; (ii) sets aside 1.11% of the New Common Stock to be distributed to holders of the 2015 Senior Notes Claims and the 2016 Senior Subordinated Notes Claims in Class A7-a; (iii) sets aside certain proceeds of Specified Avoidance Actions and Specified D&O Litigation Claims to be distributed to holders of Other Priority Claims in Class B6 and Liquidating Debtors Unsecured Claims in Class B7; and (iv) provides for the waiver of any claims for avoidance or recovery of prepetition payments to the holders of the 2015 Senior Notes Claims and the holders of the 2016 Senior Subordinated Notes Claim to the extent that such holders do not opt out of the releases contained in Section 9.3 of the Plan and do not vote against, object to, or otherwise oppose, confirmation of the Plan. In recognition of the subordination and turnover provisions of the indenture governing the 2016 Senior Subordinated Notes, the Plan provides that, until the 2015 Senior Notes are paid in full in cash, the distributions that would otherwise be made to the holders of the 2016 Senior Subordinated Notes Claims in Classes A7-a and B7 will be made to the applicable indenture trustees pro rata for the benefit of and distribution to the holders of the 2015 Senior Notes Claims. Importantly, in the case of each of the distributions set forth above, subject to the terms of the Plan, the holders of the Second Lien Notes Deficiency Claims and the Third Lien Notes Deficiency Claims, however, will waive (i) their respective rights to any distributions on account of such assets and (ii) any turnover rights as against the holders of the 2016 Senior Subordinated Notes Claims.”
Upon completion of the restructuring process, the Plan will reduce the Company’s debt, thereby improving its capital structure and liquidity profile. Jeffrey Campbell, Altegrity’s President and chief financial officer states, “We are pleased to have reached this important milestone, and look forward to emerging from the financial restructuring process as a stronger and more competitive company that is well positioned for growth and success, with significantly less debt and an improved capital structure, we are well-positioned to invest in our Kroll and HireRight businesses to enhance their growth and create value for our stakeholders.”
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