(October 28 – 10:35 ET) – Philip Services Corp. has filed a Supplement to the Amended and Restated Plan of Compromise and Arrangement under the Companies Creditors Arrangement Act in Canada.
The Company also announced that over 90% of those unsecured creditors who voted on the Company’s U.S. Amended Joint Plan of Reorganization voted to accept the U.S. Plan.
Philip’s secured creditors will vote on the Canadian Plan on November 2, 1999 and confirmation from the Canadian Court will be sought shortly thereafter. Based on existing secured creditor commitments, Philip says its confident of support for its Canadian Plan, which will allow the Company to complete its financial restructuring while not impairing its Canadian businesses.
Under the amended structure, Philip says it will transfer the assets of its Canadian businesses as a going concern to two or more newly incorporated Canadian companies, that, upon completion of the transfers, will be wholly owned subsidiaries of Philip Services (Delaware), Inc. Philip says it will continue to meet its ongoing contractual and business obligations to its employees, clients and trade suppliers. The Company’s insurance and bonding, as well as its letters of credit obligations, will be transferred to the new legal entities or be re-issued.
-IE Staff
For more please see: