Sunbeam Corp. said a federal court confirmed its plan to emerge from bankruptcy, almost 2 years after the company filed for Chapter 11 protection in the face of heavy debt, shareholder lawsuits, and an accounting probe.
The maker of Coleman camping equipment, Oster home appliances, and other brand-name products said the U.S. Bankruptcy Court for the Southern District of New York confirmed the plans of reorganization for Sunbeam and its domestic subsidiaries.
It expects to close transactions under its plans and emerge from chapter 11 as soon as possible. The company also said it plans to change its name to American Household Inc. The plan of reorganization provides for converting substantially all of Sunbeam's secured bank debt to equity in Sunbeam, Sunbeam said. It said principal equity holders will be Morgan Stanley, Wachovia, Bank of America, and Oaktree Capital. Holders of zero coupon subordinated debentures will get 1.5 percent of the equity of Sunbeam and other unsecured creditors of Sunbeam will share U.S. $1 million, the company said. (Reuters)
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