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Tokheim Corp.’s business was running on empty, so the automatic gas-pump maker pulled into Delaware’s bankruptcy courts for a tune-up. Fort Wayne, Ind.-based Tokheim filed for Chapter 11 protection from creditors in U.S. Bankruptcy Court in Wilmington, Del. It listed $691 million in assets and $700 million in debts in court papers. Slumping sales — tied to weakening demand for automated pumps due to mergers and consolidations among major oil companies — left Tokheim officials unable to make $11.2 million in interest payments to bondholders last month. Tokheim officials had been negotiating with creditors for months seeking to restructure the company’s finances. Its prepackaged Chapter 11 filing received the backing of a majority of the company’s lenders and bondholders, executives said. Under the terms of the prepackaged financial restructuring plan, the company’s approximately 12.7 million shares of outstanding common stock will be canceled, the company said in a statement. In exchange for their notes, the holders of $260 million of senior and junior subordinated notes and certain other unsecured creditors will receive 4.5 million shares of new common stock representing up to 90 percent of the equity value of the restructured Tokheim, according to the company. Holders of existing common stock, which will be canceled, will receive warrants with a six-year term giving them the right to acquire an aggregate of 549,451 shares of the new common stock of the reorganized company at an exercise price of $49.50 per share. Bankruptcy Court has issued an order allowing the company to access the remaining $28 million of its new $48 million debtor-in-possession credit facility provided by the Tokheim lending group. Under the terms of the plan, the DIP credit facility will be replaced by a five-year revolving, $48 million facility upon the company’s emergence from the restructuring. The court has set Oct. 4 as the confirmation hearing date on Tokheim’s prepackaged financial restructuring plan. Douglas K. Pinner, chairman, president and chief executive officer of Tokheim, said in a statement, “We are gratified by the strong support that our lending group has demonstrated by providing Tokheim with a substantial credit facility. It is a ringing endorsement of their belief in the opportunities available to Tokheim as global market leader.” Among the company’s largest unsecured creditors are New York-based Deutsche Bank, trustee for bondholders owed $204 million; the Chicago branch of the Bank of New York, trustee for bondholders owed $50 million; and New York’s Paine Webber Inc. owed $556,709 for professional services, according to court papers. Besides electronic and mechanical fuel pumps, Tokheim also makes automated retail systems and pay-at-the-pump equipment. Oil companies, service stations and convenience stores are among the worldwide company’s customers. Tokheim is represented in the Chapter 11 case by Anthony Clark of the Wilmington, Del., office of New York’s Skadden Arps Slate Meagher & Flom. The case is In Re Tokheim Corp., No. 00-3455. Gas Pump Under the terms of the prepackaged financial restructuring plan, the company’s approximately 12.7 million shares of outstanding common stock will be canceled.

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