The U.S. Bankruptcy Court entered an order confirming Reichhold Holdings’ Second Amended Chapter 11 Plan of Liquidation. The Plan provides for the following creditor treatment: Secured claimholders will receive payment in full in cash or collateral securing the claim; general unsecured claimants holding uninsured claims will receive a share of the liquidating trust interests and convenience claim holders will receive cash equal to 5% of their claim.
This privately-held synthetic materials’ provider filed for Chapter 11 protection on September 30, 2014, listing $538 million in pre-petition assets. When discussing its financial demise, the Company notes numerous contributing factors. Specifically, the Company points to declining revenues, primarily in the coatings business and the result of housing level declines in 2005 and 2006 as well as the subsequent U.S. financial crisis in 2008. These declining revenues were coupled with mounting net losses and negative cash flows.
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