Merisant wins support for reorg plan

Merisant Worldwide Inc., the closely held maker of Equal artificial sweeteners, won support from its unsecured creditors committee after modifying its reorganization plan to enhance the creditors' recovery.

"The plan accomplishes a deleveraging" of the company's capital structure "by removing approximately $400 million in indebtedness," Merisant officials said in the disclosure statement, a description of the amended plan filed Oct. 2.

Merisant, based in Chicago, sought bankruptcy protection Jan. 9 in U.S. Bankruptcy Court in Wilmington, Delaware. The company and its units collectively had debt of $513.4 million and assets of $401.4 million as of June 30, according to Chapter 11 documents filed Sept. 12.

Under the revised plan, unsecured creditors of the Merisant Co. unit with claims totaling $235.3 million would get 12.5 percent of the reorganized company's common stock compared with 5.5 percent previously. They also would get the right to participate in a $5 million equity offering and make a private investment in the company.

"We are encouraged that the committee supports our plan of reorganization," Chief Executive Officer Paul Block said today in a statement.

The case is In re Merisant Worldwide Inc, 09-10059, U.S. Bankruptcy Court, District of Delaware (Wilmington).