April 1, 2004 -- General Chemical Industrial Products Inc. (General Chemical) has completed its reorganization under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of New Jersey. Under the plan of reorganization that became effective on March 31, 2004, the company emerged from Chapter 11 after only three months with a significantly deleveraged balance sheet and new ownership structure.

Loughlin Meghji + Company advised the Senior Secured Lender Group on the General Chemical engagement. The LM+Co engagement team was led by founding Principal James J. Loughlin, Jr., who comments on the case:

The General Chemical engagement was an outstanding opportunity for our Firm to combine its extensive chemical industry knowledge and financial restructuring expertise. We were able to identify the key issues to preserve the business and structure a reorganization plan that maximized value for our client.

The Senior Secured Lenders, a syndicate lead by JPMorgan Chase, had credit exposure of $85 million at the commencement of our efforts. Ultimately, the prepetition secured bank claims and debtor in possession facility claims were paid in full. The bondholder group, led by Harbert Distressed Investor Fund Ltd. committed new funding to fully repay the Senior Lenders and take ownership of the reorganized company. Loughlin adds:

It was a win-win situation for the Banks, the bonds and the company. Our objective of maximizing recovery for the Banks was accomplished when they were repaid in full with interest, while the bondholders capitalized on the opportunity to make an investment in the reorganized and deleveraged General Chemical.

Loughlin Meghji + Company provides financial advisory services to debtors, creditors and other stakeholders. It serves all of the needs of distressed investors including interim management, distressed M&A and creditor advisory services. As a leading Firm providing distressed advisory services, LM+Co has an established track record for developing and implementing strategies to maximize enterprise value and creditor recovery.