UPDATE 1-U.S. Concrete to cut $272 mln debt via bankruptcy

* Files prearranged Ch 11 in Delaware bankruptcy court

* Shareholders to get warrants for 15 pct of reorganized co

* Seeks court OK for $80 mln DIP loan

* Michigan JV not part of bankruptcy filing

* Shares fall more than 42 pct in morning trade

April 29 (BestGrowthStock) – U.S. Concrete Inc (RMIX.O: ) filed for
Chapter 11 protection on Thursday as part of a pre-arranged
restructuring deal with bondholders to cut its debt by $272
million.

Shares of the company tumbled more than 42 percent in
morning trade, but pared some losses later and were down 35
percent at 55 cents in afternoon trade Thursday on Nasdaq.

The proposed restructuring will convert the company’s 8.325
percent senior subordinated notes due in 2014 into equity in
the reorganized company.

Existing shareholders will get warrants to buy 15 percent
of the reorganized company’s stock.

U.S. Concrete said its joint venture operations in Michigan
are not part of the filing.

The company also sought bankruptcy court approval for an
$80 million debtor-in-possession (DIP) financing led by
JPMorgan to continue operations while under bankruptcy
protection.

U.S. Concrete, which listed 43 affiliates in its bankruptcy
petition, said it expects the Chapter 11 process to be
concluded within 90 days.

In court papers, the Houston-based company reported assets
of $389.2 million and debt of $399.4 million.

The case is In re: U.S. Concrete Inc, U.S. Bankruptcy Court
District of Delaware (Delaware), No: 10-11407.

Stock Report

(Reporting by Santosh Nadgir in Bangalore; Editing by
Gopakumar Warrier)

UPDATE 1-U.S. Concrete to cut $272 mln debt via bankruptcy