American Banknote to get $16 million equity infusion as part of exit financing agreement

By Ted A. Knutson

Washington, Jan. 21 - American Banknote Corp. said investors have agreed to pay $8.55 per share of common stock for a gross infusion of $16 million in capital to the company under its prepackaged Chapter 11 exit financing agreement.

Lloyd I. Miller, III, Bay Harbour Partners, Ltd. and Pollux Investments, LLC will each purchase 233,964 shares and Highland Capital Management LP will purchase 1,169,822 shares.

The pre-arranged reorganization plan also calls for holders of American Banknote's 10 3/8% senior notes to receive new common stock, cash or new notes depending on the class the holder falls into under the plan and which treatment the holder elects.

In addition, existing equity holders will get cash or a combination of cash and new common stock depending on the class they fall into under the plan.

All general unsecured creditors are to be paid in full and unimpaired and all miscellaneous secured creditors will be reinstated.

American Banknote's Chapter 11 case number is 05-10174 in the U.S. Bankruptcy Court for the District of Delaware.

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