WILMINGTON, Del. (Reuters) – Apollo Management won a six-month bankruptcy court battle to improve the terms of Pliant Corp’s reorganization plan, which will now be put to a creditors’ vote, according to court documents.
The maker of plastic packaging filed for bankruptcy in February with a negotiated plan that proposed transferring ownership to senior lenders.
Apollo, a significant holder of junior debt, as well as other creditors, opposed Pliant’s plan, which would have paid them warrants that they said were worth pennies on the dollar.
The new plan, which combines an amended proposal from Pliant and an alternative plan from Apollo, would improve the payout for junior creditors to 17.5 cents on the dollar.
A judge on Monday approved Pliant’s disclosure statement that is to be sent to creditors for a vote to approve its plan of reorganization.
The case is In re Pliant Corp et al, U.S. Bankruptcy Court, District of Delaware, No. 09-10443.