American Gilsonite Holding Company—a hydrocarbon resin supplier based in Houston, Texas—and four of its affiliates have filed petitions for relief under chapter 11 in the United States Bankruptcy Court for the District of Delaware (Case No. 16-12315).   The Debtors enter chapter 11 with a prepacked plan of reorganization and $30 million in proposed debtor in possession financing provided by an ad hoc group of the Debtors’ second lien noteholders.  According to the First Day Declaration, the Plan will convert $270 million in Second Lien Notes into 98% of the equity in the reorganized Gilsonite and $100 million in subordinated notes, while providing current equity holders with the remaining 2% of equity.  General unsecured claims will be paid in the ordinary course and be unimpaired under the Plan.  The Debtors’ disclosure statement can be found hereWeil, Gotshal & Manges LLP is proposed counsel to the Debtors and Epiq Bankruptcy Solutions, LLC is the proposed claims agent.  The cases have been assigned to the Honorable Christopher S. Sontchi.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.