Keystone Tube parent A.M. Castle & Co. and affiliates filed a prepackaged Chapter 11 on June 18 to delever a specialty metals distributor with 619 employees, 21 service centers across North America, Europe and Asia, and about $411 million of debt: $112 million first-lien, $177 million 12.75% second-lien notes, $22.3 million convertible third-lien notes and $90-$100 million general unsecured obligations. The RSA was signed April 6 with 100% of first-lien, about 92% of second-lien and about 61% of third-lien secured claims already committed, and solicitation began before the filing; voting showed 100% first- and second-lien support and 79.24% by amount of third-lien support source filing.

On Aug. 2, the court approved the disclosure statement and confirmed the amended prepackaged plan, finding objections withdrawn, settled or overruled and authorizing implementation once conditions are satisfied. The plan leaves general unsecured claims unimpaired at 100%, extinguishes old equity, gives old equity a settlement opportunity for 20% of new common stock subject to dilution, and converts roughly $200 million of second- and third-lien debt into new common stock, convertible exchange notes and cash while arranging exit financing/new money notes for the reorganized business source filing source filing.