The filing of the plan of reorganization and related disclosure statement was made in connection with the plan funding commitments, announced on September 12, 2008, from an affiliate of Ripplewood Holdings L.L.C. and from Silver Point Finance LLC, and Monarch Master Funding Ltd. As previously announced, the funding commitments form a basis for IBC to emerge from chapter 11 as a stand-alone company, under the plan of reorganization filed with the bankruptcy court.
The plan of reorganization and related disclosure statement filed on October 4, 2008, reflect a substantially impaired recovery for pre-petition senior secured creditors. For general unsecured creditors and equity security holders, the amended plan of reorganization and related disclosure statement reflect no recovery, although on October 3, 2008, the company and its pre-petition secured creditors reached a compromise with the Official committee of unsecured creditors appointed in the cases. As a result of the compromise, the official committee of unsecured creditors withdrew its previously filed objection to the company's efforts to obtain bankruptcy court approval of the plan funding commitments and agreed to support the company's plan of reorganization as it will be subsequently amended to reflect the compromise.