Cooper-Standard's disclosure statement approved by bankruptcy court

By Lisa Kerner

Charlotte, N.C., March 26 - Cooper-Standard Holdings Inc.'s disclosure statement was approved at a hearing on Friday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is set for May 12.

The plan is based on Cooper-Standard's previously reported new $355 million equity commitment agreement with holders of a majority of the outstanding principal amount of its 7% senior notes due 2012 and a substantial majority of the outstanding principal amount of its 8 3/8% senior subordinated notes due 2014.

Under the amended plan:

• The company's debtor-in-possession financing and pre-bankruptcy credit facility will be paid in full in cash, the same as under the original plan;

• Holders of senior notes will be paid in full in cash, except that the backstop parties have agreed to forgo the cash payment and instead will receive a distribution of new common stock.

Under the original plan, these creditors were slated to receive 18.75% of the new common stock in the reorganized company, with eligible holders scheduled to receive rights to purchase a total of 45% of the new common stock;

• Holders of general unsecured claims against Cooper-Standard Automotive and all of its debtor subsidiaries will be paid in full in cash, the same as under the original plan;

• Holders of senior subordinated notes will receive 8% of the new common stock in the reorganized company and warrants to purchase a total of 3% of new common stock. Eligible holders will also receive rights to purchase a total of 39.6% of the new common stock.

Under the previous plan, these noteholders would have received 6.25% of the new common stock and warrants to purchase a total of 5% of the new common stock or a cash payment, at the election of the noteholders. Eligible holders of the senior subordinated notes would also have received rights to purchase 15% of the new common stock;

• Backstop parties will receive 20.95% of the new common stock on account of their senior note claims; and

• Old Holdings equity interests will be cancelled and holders will receive no distribution, the same as under the original plan.

Cooper-Standard, a Novi, Mich., manufacturer and marketer of systems and components for the global automotive industry, filed for bankruptcy on Aug. 3, 2009. Its Chapter 11 case number is 09-12743.

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