The PMI Group Inc. said the U.S. Bankruptcy Court for Delaware has confirmed the company’s Chapter 11 plan of reorganization. This was revealed in an 8-K filing obtained via DisclosureNet.com.
Holders of priority nontax claims and holders of allowed secured claims will be paid in full under the plan. Holders of allowed general unsecured claims, allowed senior notes claims and allowed subordinated note claims will receive a pro rata share of “creditor cash” and new common stock of the reorganized company. Holders of allowed “convenience claims” will get 90% of the amount. But equity holders will get nothing.
There were 197 million shares of common stock outstanding as of July 12. The stock is currently trading at $0.06 per share and on July 26, 543,200 shares changed hands, according to Yahoo Finance.
The plan noted that the sale of PMI’s 50% joint venture interest in CMG Mortgage Insurance Co. was subject to the approval of an Arizona court as well as insurance regulators. The Arizona court
