Encompass Services Corp., with about $118 million in cash as of Sept. 30, terminated its rights offering and cancelled its Oct. 15 special shareholders' meeting. It has proposed a debt-restructuring plan to its creditors: pay trade claims to its vendors under its normal business practices; restructure a portion of its loans from senior secured lenders; exchange the company's senior subordinated notes to new common stock; and cancel its junior subordinated notes, convertible preferred stock, common stock and all outstanding options and warrants.
If approved, the plan would be implemented under a "prepackaged" Chapter 11 bankruptcy filing.