Reorg Credit Intelligence – 10/11/2021

CalPlant Bankruptcy Supported by 62% of Senior Bondholders;
Toggle Plan Envisions Sale or Restructuring


CalPlant I LLC and parent company CalPlant Holdco, manufacturers of rice straw-based medium-density fiberboard, or MDF, in Willows, Calif., filed for chapter 11 protection yesterday, Tuesday, Oct. 5, in the Bankruptcy Court for the District of Delaware. The debtors enter chapter 11 having executed a plan support agreement with about 62% of holders of the company’s senior bonds and the senior bond trustee. The PSA provides for “two largely parallel restructuring paths,” according to the first day declaration, which consists of a sale process to market test substantially all of the debtors’ assets, or, in the event a sale process is unsuccessful, a debt restructuring through a chapter 11 plan “to be negotiated in good faith with the Senior Bondholders.” Read the full story here.

Contact: Matt Danese