Keystone Consolidated Industries announced that it had recently executed, and is seeking in the U.S. Bankruptcy Court for the Eastern District of Wisconsin, approval of an agreement with its largest pre- petition shareholder, Contran Corp., one of Keystone's Debtor-In-Possession lenders; its largest labor union, the Independent Steel Workers Alliance; its official committee of unsecured creditors; certain individual members of the committee; and certain retiree groups to facilitate Keystone's successful exit from chapter 11 bankruptcy.
The agreement reached by the parties provides, among other things, for a process to maximize Keystone's value and that the parties would finalize a Contran-sponsored plan of reorganization that likely would go before the Bankruptcy Court for confirmation this summer.
Additionally, the agreement allows each of the parties to evaluate, negotiate, support and express a preference for a qualified alternative plan of reorganization proposed by another party.
Under the terms of the agreement, the consensual plan and the qualified alternative plan process both contemplate Keystone will exit bankruptcy this summer.
The structured nature of the potential dual plan process is intended to achieve a controlled, efficient and successful exit from bankruptcy as well as to ensure Keystone exits from bankruptcy as soon as possible while maximizing the value available to its constituents and maintaining the stability of the company in the future. I
The agreement contemplates a single confirmation process that would allow multiple plans, including any potential QAP, to proceed on the same exit and confirmation timeline as the Consensual Plan.
The Parties have agreed to defer disclosure of the applicable terms of the various plans to plan sponsors as required to maintain the integrity and value-maximizing potential of the plan consideration process set forth in the Agreement.