Centaur disclosure statement approved; plan hearing set for Dec. 13

By Caroline Salls

Pittsburgh, Oct. 20 - Centaur LLC received court approval of the disclosure statement for its fourth amended plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Dec. 13.

Under the plan, pre-bankruptcy first-lien claims will be exchanged for $115 million in new first-lien debt, minus the amount of any exit financing, as well as for 97.8% of new payable-in-kind notes, non-detachable penny warrants to purchase new equity interests and the cash proceeds of specified asset sales.

If holders of second-lien credit agreement claims vote to accept the plan, they will receive new PIK notes and litigation trust interests. If they vote to reject the plan, these creditors will receive cash proceeds remaining after payment of administrative claims and litigation trust interests.

In addition, general unsecured creditors will receive litigation trust interests under the amended plan.

Treatment of creditors will include:

• Holders of administrative claims, intercompany financing claims, convenience claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• Holders of first-lien claims will receive new first-lien debt, new PIK notes, warrants to purchase new equity interests and asset sale proceeds;

• Holders of second-lien claims will receive new PIK notes and litigation trust interests if they vote to accept the plan and cash proceeds and litigation trust interests if they vote to reject it;

• Holders of other secured claims will either be paid in the ordinary course of business or receive the collateral securing their claims;

• If holders of Valley View Downs unsecured claims vote to accept the plan, they will receive $400,000 in new PIK notes and litigation trust interests. If they vote to reject the plan, they will receive a share of cash sale proceeds and a share of litigation trust interests;

• Holders of general unsecured claims will receive a share of litigation trust interests; and

• Holders of equity interests will receive no distribution.

Centaur, an Indiana-based gaming and horseracing company, filed for bankruptcy on March 6, 2010. The Chapter 11 case number is 10-10799.

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