Keystone files reorganization plan

Keystone files reorganization plan

Keystone Consolidated Industries, Inc. filed it First Amended Joint Plan of Reorganization and Disclosure statement on May 26, 2005. Some brief highlights of the plan include: * The assumption of the previously negotiated amendment to the collective bargaining agreement with the Independent Steel Workers Alliance (the "ISWA"), Keystone's largest labor union; * Liabilities due to pre-petition secured creditors would be reinstated in full against reorganized Keystone; * All of Keystone's common and preferred stock outstanding at the petition date would be cancelled; * Pre-petition unsecured creditors of Keystone would receive, in aggregate, $5.2 million in cash, a $4.8 million note and 49% of the common stock of reorganized Keystone (the amount of cash and principal amount of the note may increase based on certain events); * Certain operating assets and existing operations of Sherman Wire Company ("Sherman Wire"), one of Keystone's pre-petition wholly-owned subsidiaries, will be sold at fair market value to Keystone, which will then form a newly created wholly-owned subsidiary of reorganized Keystone with those assets and operations; Confirmation of the plan depends on several things, among them: approval of the disclosure statement at a hearing on June 24, 2005; approval of Keystone’s and its subsidiaries various creditor constituencies; approval of the of the Bankruptcy Court; and securing adequate exit financing to refinance the balance of Keystone’s Debtor-in-Possession loans. Dallas, Texas-based Keystone is a leading manufacturer of and distributor of fencing and wire products, wire rod, industrial wire, nails, and construction products.