SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and
Exchange Act of 1934
Date of Report (date of earliest event reported) August 31, 2000
RAYTECH CORPORATION
DELAWARE 1-9298 06-1182033
(State or Other (Commission (I.R.S. Employer
Jurisdiction of File No.) Identification No.)
Incorporation)
Four Corporate Drive, Shelton, Connecticut 06484
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code 203-925-8023
Page 1 of 4
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Item 3. Bankruptcy or Receivership
As previously reported, on March 10, 1989, Raytech
Corporation (the "Company" or "Debtor") filed a voluntary
petition for relief under Chapter 11 of Title 11 of the
United States Code (the "Bankruptcy Code") with the
United States Bankruptcy Court for the District of
Connecticut (the "Bankruptcy Court"). Since the
petition date, the Debtor has operated its business as
debtor in possession in accordance with the provisions
of the Bankruptcy Code.
On August 31, 2000, the Bankruptcy Court entered an
Order Confirming Raytech Corporation's Second Amended
Plan of Reorganization (the "Confirmation Order"), which
confirmed the Company's Second Amended Plan of
Reorganization (the "Plan"). The "effective date of the
plan," as used in the Bankruptcy Code, shall not occur
until the satisfaction of certain conditions precedent
(the "Effective Date").
The Plan was proposed jointly by the Debtor, the
Official Committee of Unsecured Creditors, the Guardian
ad litem for Future Claimants, the Connecticut
Department of Environmental Protection and the United
States Environmental Protection Agency (the
"Governments") and the Official Committee of Equity
Holders in an agreement signed in October 1998
providing for the basic terms of a consensual plan of
reorganization.
As previously disclosed, Orders of various courts have
held the Debtor liable as a successor to Raymark
Industries, Inc. for asbestos-related personal injury
claims ("API Claims") and environmental claims of the
Governments ("Environmental Claims") amounting to an
estimated $7.2 billion in total liabilities.
The Plan is based on a settlement providing for an
exchange of allowed API Claims estimated to be $6.76
billion and allowed Environmental Claims of $432
million for 90% of the common stock of the Debtor with
existing equity holders in the Debtor retaining 10% of
the common stock in the Debtor. In accordance with the
Plan, all present and future API Claims will be assumed
and resolved by an independently administered claims
trust (the "PI Trust"). On the Effective Date, a
channeling injunction ordered by the Bankruptcy Court
pursuant to Section
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24(g) of the Bankruptcy Code will permanently and
forever stay, enjoin and restrain any asbestos-related
claims against the Debtor, thereby channeling such
claims to the PI Trust for resolution.
The Plan provides for the classification and treatment
of all claims and equity interests and on the Effective
Date the rights afforded and the treatment of all
claims and equity interests in the Plan shall be in
exchange for and in complete satisfaction, discharge
and release of all claims and equity interests against
the Debtor.
The total assets of the Debtor as of July 2000 month-end
of $235.5 million consist of investments in subsidiaries of
$93 million and a deferred tax asset of $141 million. The
total liabilities as of that date consist of liabilities
subject to compromise of $7.2 billion offset by negative
equity of $7.0 billion.
The Effective Date of the Confirmation Order is subject
to the following conditions precedent: (a) The
Bankruptcy Court and United States District Court shall
have entered an order or orders establishing the
asbestos personal injury permanent channeling
injunction and the claims trading injunction, (b) the
enabling agreement of the PI Trust is signed and in
effect and (c) certain favorable rulings have been
obtained from the Internal Revenue Service concerning
the Plan or in lieu thereof opinions of counsel. The
date of fulfillment of the referenced conditions and
the Effective Date are unknown at this time.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereto duly authorized.
RAYTECH CORPORATION
By: /s/LEGRANDE L. YOUNG
LeGrande L. Young
Vice President, Administration,
Secretary and General Counsel
