Bankruptcy court confirms Dayton Superior plan

Dayton Superior expects to exit bankruptcy protection around Oct. 26; court confirms plan

• On 5:44 pm EDT, Wednesday October 14, 2009

DAYTON, Ohio (AP) -- Dayton Superior Corp., which makes products used in concrete construction, said it expects to emerge from bankruptcy protection around Oct. 26.

The company said a federal bankruptcy court in Delaware had confirmed its reorganization plan was accepted by "an overwhelming majority of Dayton Superior's creditors."

On April 19, Dayton Superior filed for Chapter 11 bankruptcy protection and said it received $165 million in financing to continue its restructuring. GE Capital, the financial-services unit of General Electric Corp., agreed to provide the financing.

Under the plan, Dayton Superior will eliminate debt of $230 million, or about 65 percent of its total debt at the time it filed for bankruptcy protection. Annual interest payments will be reduced by about $24 million, the company said.

All existing common shares in the company are being canceled and will receive no recovery, Dayton Superior said. It will emerge with a new $110 million, four-year revolving credit facility and a $100 million term loan.

Some $170 million in senior subordinated notes will be converted into new stock of the reorganized company. Qualified note holders have purchased additional shares of stock through a $100 million rights offering backstopped by Oaktree Capital Management LP, the largest pre-petition note holder.

Oaktree will own a substantial majority of the stock of the reorganized company, which will be privately held and operated by the current management team.

Buzz up!