Sunbeam Corp., parent of camping equipment manufacturer Coleman and several well-known home appliance brands, revealed today (Sept. 9) an amended bankruptcy reorganization plan that includes payments in full to the company’s vendors and suppliers.
Sunbeam filed for Chapter 11 bankruptcy protection in February 2001 because it was unable to pay the debt accumulated by its former chairman, Al “Chainsaw” Dunlap, who was fired in June 1998.
Dunlap agreed last week to pay $500,000 to settle an accounting fraud case filed by the Securities & Exchange Commission (SEC).
The amended reorganization plan calls for Sunbeam’s secured creditors, Bank of America, Morgan Stanley and Wachovia, to become its largest stockholders.
Sunbeam’s existing shareholders would get nothing under the plan, which needs to be approved by the U.S. Bankruptcy Court for the Southern District of New York.
“The amended plans of reorganization represent the next step forward for Sunbeam’s operating businesses, our employees, vendors and retailers,” said Jerry W. Levin, who will remain as Sunbeam’s chairman and CEO. “Sunbeam will emerge (from bankruptcy) as a strong, more competitive company with a new capital structure and substantially less debt.”