Tronox Inc. (TROX)

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Tronox POR - Disclosure Statement is up.


Proposed Joint Plan of Reorganization of Tronox Incorporated et al. Pursuant to Chapter 11 of the Bankruptcy Code -http://www.kccllc.net/documents/0910156/0910156100707000000000011.pdf

Disclosure Statement Regarding the Joint Plan of Reorganization of Tronox Incorporated, et al. Pursuant to Chapter 11 of the Bankruptcy Code - http://www.kccllc.net/documents/0910156/0910156100707000000000012.pdf

DS pg. 5-7 ( Equity is Class 6 and highlighted in bold for this forum)

Treatment of Claims and Equity Interests under the Plan
The Plan organizes Tronox’s creditor and equity constituencies into groups called “Classes.”

For each Class, the Plan describes
(a) the underlying “Claim” or “Interest,”
(b) the recovery available to the holders of Claims
or Equity Interests in that Class under the Plan,
(c) whether the Class is “Impaired” under the Plan, meaning that
each holder will receive less than the full value on account of its Claim or Equity Interest or that the rights of holders
under law will be altered in some way (such as receiving stock instead of holding a Claim) and
(d) the form of
consideration (e.g., cash, stock or a combination thereof), if any, that such holders will receive on account of their
respective Claims or Equity Interests.


Class 1: Priority Non-Tax Claims -
Each Holder of an Allowed Class 1 Claim shall be paid in
full in Cash on or as reasonably practicable after (i) the
Effective Date, or (ii) the date on which such Priority Non-
Tax Claim becomes Allowed.
$1 million 100% 100%

Class 2: Secured Claims
In the sole discretion of Tronox, each Holder of an Allowed
Class 2 Claim shall receive one of the following treatments:
(i) payment in full in Cash, including the payment of any
$1 million 100% 100%

Class 3: General Unsecured Claims (Including Indirect Environmental Claims and the Unsecured Notes Claim)
Holders of Allowed General Unsecured Claims will receive
their Pro Rata Share of the GUC Pool, which consists of
100% of the New Common Stock in Reorganized Tronox
issued and outstanding as of the Effective Date (subject to
dilution by shares issued in connection with the Management
Equity Plan, the New Convertible Preferred Stock and the
New Warrants).
$470.6 million
80-100%4 0%

Class 4: Tort Claims
If Class 4 votes in favor of the Plan, each Holder of a Tort
Claim will receive a distribution from the applicable Tort
Claims Trust in accordance with applicable Tort Claims
Trust Distribution Procedures. The Tort Claims Trusts will
be funded on the Effective Date with (i) the right to 12% of
the proceeds of the Anadarko Litigation, (ii) $7 million in
Cash (the Funded Tort Claims Trust Amount) and (iii) the
Tort Claims Insurance Assets. The sole recourse of Holders
of Tort Claims shall be to the Tort Claims Trust and such
Holders shall have no right at any time to assert Tort Claims
against Reorganized Tronox.
If Class 4 votes to reject the Plan, Holders of Allowed Tort
Claims will receive their Pro Rata Share of the GUC Pool,
which consists of 100% of the New Common Stock in
Reorganized Tronox issued and outstanding as of the
Effective Date (subject to dilution by shares issued in
connection with the Management Equity Plan, the New
Convertible Preferred Stock and the New Warrants).
If Class 4 votes to reject the Plan, Reorganized Tronox will
retain
(i) the right to 12% of the proceeds of the Anadarko
Litigation
(ii) the $7 million in Cash that would have been
allocated as the Funded Tort Claims Trust Amount and
(iii) the Tort Claims Insurance Assets; provided, however,
that Reorganized Tronox shall be required to use any
Unknown Unknown 0%



Class 5: Environmental Claims
Each Holder of an Environmental Claim shall be entitled to
treatment of its Environmental Claim and receive such
consideration as is provided in the Environmental Claims
Settlement Agreement. On the Effective Date, the
Environmental Response Trusts (or any other trusts as
designated by the United States) will be funded with the
following consideration:
(i) the right to 88% of the proceeds
of the Anadarko Litigation;
(ii) up to $145 million (but not
less than $115 million) in Cash (the Funded Environmental
Response Trust Amount);
(iii) the New Convertible Preferred
Stock;
(iv) the New Tranche A and Tranche B Warrants;
(v) the Nevada Assets; and
(vi) the Environmental Insurance
Assets.
$1.4 -5.2billion


Class 6: Equity Interests in Tronox Incorporated
On the Effective Date, all Equity Interests in Tronox
Incorporated will be canceled and of no further force or
effect.
If Class 6 votes in favor of the Plan, each Holder of an
Equity Interest in Tronox Incorporated will receive its Pro
Rata share of New Tranche C Warrants to be issued on the
Effective Date.
If Class 6 votes to reject the Plan, there will be no
distribution to the Holders of Class 6 Equity Interests.
— $3-6 million
$0