* Proposed plan to cut debt by $150 million
* Plan to be implemented through Chapter 11 bankruptcy
* Debt holders to get 82.6 pct in new co
* Current shareholders to get 17.4 pct in new co
March 2 Troubled industrial textiles
manufacturer Xerium Technologies Inc (XRM.N) said it began
soliciting votes from lenders on a restructuring plan that
would cut its debt by $150 million through a prearranged
Chapter 11 bankruptcy filing.
Under the proposed plan, about $620 million of existing
debt would be exchanged for $10 million in cash, $410 million
in new term loans maturing in 2015 and about 82.6 percent of
the company's common stock, Xerium said.
Current shareholders would retain a minority ownership
interest of about 17.4 percent in the company and would receive
warrants to buy up to an additional 10 percent of the common
The solicitation period is currently set to expire on March
Raleigh, North Carolina-based Xerium has 32 manufacturing
facilities in 13 countries and over 3,370 employees worldwide,
according to the company's website.
(Reporting by Santosh Nadgir in Bangalore; Editing by Anne