Pioneer Cos. file amended reorganization plan

New York, Sept. 21 - Pioneer Cos., Inc. said it amended its reorganization plan in light of expected lower cash flows.

Under the revised plan, the Houston chemical company will now issue $200 million of new debt in exchange for its $552 million of outstanding senior secured indebtedness, reduced from $250 million previously. Senior secured creditors will continue to receive 97% of the common stock of the reorganized company.

The new debt will be made up of a $50 million of five-year floating-rate term loan and $150 million of seven-year 10% bonds. Mandatory prepayments will be required on the term loan from excess cash flow.

Pioneer said that the official committee of secured creditors has been involved in negotiating the plan and supports its confirmation.

The revision has been filed with the U.S. Bankruptcy Court for the Southern District of Texas, Pioneer said. It added that the court has approved the revised disclosure statement explaining the plan and that ballots will be mailed to holders of claims by Oct. 1 for them to vote.

Pioneer still aims to emerge from Chapter 11 by the end of the year, Michael J. Ferris, president and chief executive officer, said in a news release.

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