SHADY GROVE, Pa. — The Bankruptcy Court approved Grove Worldwide's disclosure statement for its joint plan of reorganization, the company said. The approval allows Grove to solicit votes for approval of its reorganization plan.
“With the continued support of our secured lenders and other stakeholders and the solicitation of acceptances about to begin, Grove Worldwide is squarely on track to emerge from Chapter 11 expeditiously with a more appropriate capital structure and sufficient financial resources to fuel future growth and development,” said CEO Jeffry Bust.
Under the terms of the plan, Grove's suppliers and other general unsecured creditors will receive a cash payment equal to 100 percent of allowed claims.
“Grove Worldwide is squarely on track to emerge from Chapter 11 expeditiously with a more appropriate capital structure and sufficient financial resources to fuel future growth and development.”
— Jeffry Bust, Grove CEO.
Grove filed its voluntary petitions and plan or reorganization in the United States Bankruptcy Court for the Middle District of Pennsylvania in Harrisburg, Pa., May 7. Under the plan, Grove's debt would be reduced from $584 million to $205 million and annual interest expense from $63 million to $17 million. Grove received approval in May to pay prepetition and post-petition employee benefits, wages and salaries during restructuring.
