The U.S. Bankruptcy Court issued an order, on an interim basis, approving Noranda Aluminum Holding’s global settlement agreement between the Debtors; term secured parties (Cortland Capital Market Services); Delaware Trust Company; the official statutory committee of unsecured creditors and the Pension Benefit Guaranty Corporation (PBGC).
As previously reported, “The Pension Benefit Guaranty Corporation’s administrative priority claim (the ‘Allowed PBGC Administrative Claim’) will be allowed in the amount of $6,700,000. The claims of Delaware Trust Company, as successor Indenture Trustee, for its Indenture Trustee Fee (as defined in the Stipulation) shall be allowed in the amount of $500,000.”
Court-filed documents continue, “Pursuant to the Cash Collateral Amendment, proceeds from the Downstream Sale in the amount of $1,250,000 were reserved (the ‘HL Reserve’) for the benefit of Houlihan Lokey pending a determination by the Court (or a settlement mutually acceptable to HL and the Ad Hoc Group of Pre-Petition Term Lenders) that HL is entitled to payment of a fee from the HL Reserve….Specifically, in conjunction with the Amended Final DIP Order, the Stipulation averts a potentially disastrous and value-destructive path for these Chapter 11 Cases, and conserves the estates’ limited resources by avoiding what would otherwise be complex and time consuming litigation among the parties relating to, among other issues, the use, allocation and distribution of proceeds of both the Upstream and Downstream Sales.”
In addition, “Importantly, the Stipulation, in conjunction with the Sale Order and Amended Final DIP Order, provides the mechanics for an expeditious and value-maximizing conclusion to these Chapter 11 Cases without engaging in unnecessary, costly and complicated litigation before this and other courts. Finally, the Stipulation establishes a framework for creditors to receive recoveries through the Creditor Trust.”
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