System Integrators Inc, Sacramento, California computerised newspaper systems integrator, says it expects to emerge from Chapter 11 bankruptcy protection by issuing new debt to secured creditors and new stock to holders of $45m in unsecured subordinated notes – under its plan, holders of $34m in secured debt will receive new debt equal to and backed by the assets of the company; the remaining debt will drop to unsecured classification and be satisfied by new common stock; the bankruptcy court will set a value on the company based on expert testimony and System Integrators believes the plan will not work if the value of the company is set at more than $15m because the debt load will then be too great.
