AMPAM Files Reorganization Plan

ROUND ROCK, TEXAS American Plumbing & Mechanical filed a proposed reorganization plan and disclosure statement Feb. 25 with the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division. All of AMPAMs subsidiaries that filed for Chapter 11 relief are included in the plan and consolidated into one estate. The plan would reorganize AMPAM into five primary operating subsidiaries and

ROUND ROCK, TEXAS — American Plumbing & Mechanical filed a proposed reorganization plan and disclosure statement Feb. 25 with the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division. All of AMPAM’s subsidiaries that filed for Chapter 11 relief are included in the plan and consolidated into one estate.

The plan would reorganize AMPAM into five primary operating subsidiaries and two independent companies comprising the operations of AMPAM, J.A. Croson Co. and AMPAM Miller Mechanical. AMPAM sold the operations of AMPAM Commercial Sherwood Mechanical during the Chapter 11 proceedings and expects to sell the assets and operations of two other subsidiaries by the effective date of the plan.

The plan provides for the issuance of new notes, preferred stock and common stock as well as warrants to the company’s senior secured creditors. It also would arrange distribution of the new common stock to the management of the operating companies to ensure the success of the reorganization, AMPAM said. Unsecured creditors will receive warrants to purchase 10% of the new common stock of reorganized AMPAM, Croson and Miller. Existing holders of preferred stock and common stock would receive no distribution under the plan.

“We have worked hard with certain key creditor constituencies to develop a plan that will provide a reorganized AMPAM with a capital structure that can be supported by cash flows from ongoing operations,” CEO Robert Christianson said. “We have reached this key milestone because of the hard work and focus of the AMPAM employees and management team.”

The plan is subject to approval by certain creditor classes. Disclosure statements and voting instructions will be mailed following court approval of the disclosure materials.

AMPAM is focused primarily on the residential plumbing and HVAC contracting services. Additional information is available at www.ampam.com.