Newland International Properties Corp. obtains sufficient support from holders of its $220 million Senior Secured Notes due 2014
Newland International Properties Corp. files pre-packaged Chapter 11 plan of reorganization
Panama City, Panama – April 30, 2013 – Newland International Properties, Corp. (“Newland”), has filed a pre-packaged plan of reorganization (the “Plan”) with the United States Bankruptcy Court in the Southern District of New York (the “Bankruptcy Court”) under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). Following the voting deadline of April 29, 2013, Newland received 100% of all votes cast as well as a super-majority of all eligible votes in favor of the Plan from the holders of its 9.5% Senior Secured Notes due 2014 (the “Notes”), resulting in an accepting class as required for confirmation of the Plan under the Bankruptcy Code.
A Chapter 11 reorganization is a judicial process governed under the Bankruptcy Code which provides businesses with debt relief to support a corporate rehabilitation without having to liquidate assets and cease operations. There is no equivalent process in Panama and it is not a Panamanian insolvency. Newland intends to continue normal operations during its Chapter 11 reorganization, while restructuring the Notes on more favorable terms. The Plan, including the restructuring of the Notes, is expected to have a positive impact upon Newland’s operations.
Successful consummation of the Plan will be subject to, among other things, Bankruptcy Court approval of the Plan.
AGCM, Inc., acted as Plan solicitation agent.
Holders of Notes seeking additional information about the Plan should contact Newland’s restructuring financial advisor, Gapstone (Attn: John McCormack +1 (646) 233-2130 or by email at jmccormack@gapstone.com).
This release does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information relating to the company, management as well as financial statements. This press release is being issued pursuant to Rule 135e under the U.S. Securities Act of 1933, as amended.
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