Grove Worldwide, a provider of mobile hydraulic cranes, truck-mounted cranes and aerial work platforms for the global market, recently announced that the Bankruptcy Court has approved the adequacy of its Disclosure Statement for its Joint Plan of Reorganization.

The approval of the Disclosure Statement allows Grove Worldwide to begin solicitation of votes for approval of its Plan of Reorganization. The hearing to confirm the Plan is scheduled to commence on August 14, 2001.

"We are very pleased that the Court has approved the adequacy of our Disclosure Statement," said Jeffry D. Bust, chairman and chief executive officer. "With the continued support of our secured lenders and other stakeholders and the solicitation of acceptances about to begin, Grove Worldwide is squarely on track to emerge from Chapter 11 expeditiously with a more appropriate capital structure and sufficient financial resources to fuel future growth and development."

Under the terms of the plan, Grove’s suppliers and other general unsecured creditors (other than bondholders) will receive a cash payment equal to 100 percent of allowed claims.

On May 7, 2001, Grove announced that it had reached an agreement with its secured lender bank group and is actively negotiating with its senior bondholders on a financial restructuring of the company. To implement the restructuring, Grove Worldwide filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code together with a "prenegotiated" plan of reorganization that embodies the terms of the restructuring. Under the terms of the plan, Grove Worldwide’s debt would be reduced from $584 million to $205 million and annual interest expense would be reduced from $63 million to $17 million. Grove Worldwide received approval on May 7, 2001 to pay pre-petition and post-petition employee wages, salaries and benefits during the restructuring. All pre-petition employee benefits, wages and salaries have been continued without change since the approval was granted.

The company filed its voluntary petitions and plan of reorganization on May 7, 2001 in the U.S. Bankruptcy Court for the Middle District of Pennsylvania in Harrisburg.

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