Bus

Mark IV reorganization plan wins court approval

Posted on September 28, 2009

On Sept. 23, Mark IV Industries announced that less than five months after the company entered Chapter 11, the Bankruptcy Court for the Southern District of New York has confirmed the company’s plan of reorganization.

 

The court’s approval of the plan, which had been accepted by an overwhelming majority of Mark IV’s creditors, clears the way for Mark IV to emerge from Chapter 11 in October.

 

Under the plan, as confirmed by the court, Mark IV will reduce debt obligations on its balance sheet from approximately $1.2 billion to approximately $400 million. The company’s senior secured lenders will receive an 88 percent equity stake (before any allocation to management) in the reorganized company and pro rata participation in the Restructured Debt Term Loan Agreement. The remaining 12 percent would be shared by the company’s unsecured creditors, including senior secured lenders. Current equity in Mark IV will be cancelled and no distribution will be provided to current equity holders under the plan.

 

The company also announced that Jim Orchard and Mark Barberio will be co-chief executive officers of Mark IV. Orchard served as the company’s interim chief executive officer during the restructuring. Barberio, who also continues as Mark IV’s chief financial officer, joined the company in 1985.

 

 

View comments or post a comment on this story. (0 Comments)

More News

Calif.'s Omnitrans introduces Token Transit mobile fare payment app

The transit agency expects that as customers switch from traditional paper passes to mobile fares, it will be able to save on printing and outlet distribution costs. 

San Joaquin RTD opens first 100% electric BRT route in U.S.

RTD received grant funding to cover the cost of the new electric buses, which were built by Calif.-based Proterra.

Proterra receives Raleigh-Durham Airport order

This purchase marks the company’s first airport customer and the first airport electric bus deployment in the Carolinas.

New Flyer to supply 180 buses for Edmonton Transit, Winnipeg Transit

Edmonton's replacement of aging fleet vehicles with more efficient, air-conditioned models supports an ETS goal of transforming the transit experience.

New Flyer advances 2nd-year production of SEPTA diesel-electric hybrids

The buses will be deployed in the City of Philadelphia and surrounding suburbs of Delaware, Montgomery, Bucks, and Chester, supporting four million people living in and around southeastern Pennsylvania.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close