Fansteel emerges from Chapter 11

By Jeff Pines

Washington, Jan. 26 - Fansteel Inc. said it has emerged from bankruptcy after its second amended joint reorganization plan was confirmed Jan. 23.

Its general unsecured creditors will get 50% of the North Chicago, Ill.-based company's common stock.

The Pension Benefit Guaranty Corp. will receive about 21% of the company's stock in the reorganization in return for settling its claim against Fansteel's now terminated consolidated pension plan.

The Environmental Protection Agency was also involved in the negotiations. The reorganized company will have four special purpose units to remediate environmental issues at four plants.

Pre-bankruptcy shareholders will get 24% of the newly-issued stock, and 5% is reserved for an employee plan.

The company filed for Chapter 11 on Jan. 15, 2002 with the U.S. Bankruptcy Court for the District of Delaware.

Fansteel said it expects to mail the holders their stock within 20 business days of the effective date.

Fansteel manufactures engineered metal components and aerospace castings.

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