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.