Ameripol Synpol clears unsecured creditors' objections

WILMINGTON, Del. (May 2)—Ameripol Synpol Corp. has cleared up objections by unsecured creditors to some aspects of its Chapter 11 reorganization plan, clearing the way for the financially ailing synthetic rubber producer to proceed with securing "post petition" financing arrangements necessary to keep the business operating. The creditors had objected to several actions Ameripol Synpol took before and after its Chapter 11 filing, including the transfer of ownership in April 2002 of two subsidiaries, Mallard Creek Polymers Inc. and Engineered Carbons Inc., to its parent company, GVC Holdings Inc. The SR company has proposed paying unsecured creditors 15 percent of their allowed claims (or $6.2 million, whichever is lower) plus a pro-rata share of a $5.2 million escrow fund the firm is setting up. The creditors now have agreed to accept 25 percent of the value of a transfer or sale of Engineered Carbon's interest in Degussa Engineered Carbons L.P., should it occur. The latter is a 50-50 joint venture with Degussa Corp. Ameripol Synpol filed for Chapter 11 bankruptcy protection in December 2002. It listed assets of $112 million and liabilities of $98 million.