Acosta Inc. will make a speedy exit out of chapter 11 two weeks after filing for bankruptcy protection with a prepackaged reorganization plan that hands control of the marketing services company to its lenders in exchange for eliminating about $3 billion in debt, WSJ Pro Bankruptcy reported. Acosta intends to quickly emerge from bankruptcy later this week following approval of its plan by Bankruptcy Judge Christopher Sontchi. Jacksonville, Fla.-based Acosta’s plan will allow lenders and bondholders to decide whether to cash out or become equity owners of the reorganized company in exchange for shedding debt. The new owners will also pump $325 million of new equity into the reorganized company. Acosta’s reorganization plans gives lenders an 85 percent stake in the reorganized company. A 15 percent stake is earmarked for bondholders. A group of four lenders and bondholders — Elliott Management Corp., Oaktree Capital Management LP, Davidson Kempner Capital Management LP and Nexus Capital Management — have agreed to backstop the plan, which includes a rights offering for preferred stock in the new Acosta.
