Way Cleared for Reorganization Plan
PITTSBURGH (AP) _ Allegheny International Inc. said Wednesday the 3rd U.S. Circuit Court of Appeals has cleared the way for management to file a bankruptcy court reorganization plan.
The appeals court in Philadelphia also ruled Tuesday that management may count votes cast at a shareholders meeting next week and announce the results immediately, the company said.
The court previously had said the appliance maker could do none of those things without court permission.
Company spokesman Edward Romanoff said management planned to file its reorganization plan by the end of the month, but he declined to specify whether the filing would precede the shareholders meeting scheduled for Monday.
″The sooner the company emerges from Chapter 11, the stronger it will be,″ Chairman Oliver S. Travers said in a printed statement.
Management and a shareholders group, led by the New York investment firm Spear, Leeds & Kellogg, are fueding over how to allocate the company’s resources in satisfying its obligations.
The dissident shareholders group is also challenging management for control of the board. Seven seats, a majority, are up for election at the annual meeting.
Allegheny International owns Sunbeam, Oster and other appliance and liesure products companies.
Separately, Remington Products Inc. announced that its chairman, Victor Kiam, had been approached by Speer, Leeds about participating in the formulation of the reorganization and was interested in doing so if invited by Allegheny management.
There was no immediate indication Allegheny management would seek Kiam’s participation.
Remington said Kiam, perhaps best known for his appearances in Remington product ads, has been involved in a number of successful business reorganization s and turnarounds of consumer products companies.