Dayton Superior exits Chapter 11 bankruptcy as privately held company

By Angela McDaniels

Tacoma, Wash., Oct. 26 - Dayton Superior Corp. emerged from Chapter 11 bankruptcy protection on Monday, according to a company news release.

The U.S. Bankruptcy Court for the District of Delaware approved the company's plan of reorganization on Oct. 14.

In conjunction with the plan, Dayton Superior obtained a $110 million exit financing facility and a new $100 million term loan.

Under the plan as implemented, the company's senior subordinated notes were converted into new stock of the reorganized company and $70 million of debt obligations were paid down, resulting in a total reduction of more than two-thirds of the company's pre-bankruptcy debt.

The release stated that Oaktree Capital Management, LP, the largest pre-bankruptcy noteholder, owns a substantial majority of the stock of the new company, which is privately held.

As previously reported, creditor treatment includes:

• Holders of administrative claims, priority tax claims, other priority claims and other secured claims will be paid in full in cash;

• Holders of $103.16 million in pre-bankruptcy term loan claims will recover 100% through a share of a pre-bankruptcy term loan payment amount and notes to be issued under a term loan exit facility;

• Holders of $161.64 million in subordinated notes claims will recover 24.4% in new common stock;

• Holders of general unsecured claims will receive a share of a general unsecured claim cash amount for an undetermined recovery; and

• Holders of junior convertible notes claims and equity interests will receive no distribution.

Dayton Superior is a Dayton, Ohio-based provider of specialized products consumed in nonresidential concrete construction and concrete forming. It filed for bankruptcy on April 19, 2009, and its Chapter 11 case number is 09-11351.

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