Acosta’s Chapter 11 Plan With Debt-for-Equity Swap Approved

Acosta Inc., a marketing firm owned by Carlyle Group LP, won approval of its Chapter 11 reorganization with the consent of its creditors who will swap debt for equity.

The reorganization plan, approved Dec. 16 by Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware, gives 85% of new common stock in the reorganized company to holders of first lien claims securing more than $2.1 billion in debt.

The remaining 15% of the new common stock will go to holders of senior notes for more than $840 million.

The plan envisions fully paying unsecured creditors ...