Common Stock Warrants

3 Months Ended

Mar. 31, 2012

Common Stock Warrants

Common Stock Warrants

Note 10                  Common Stock Warrants

As discussed in Note 7, Debt, on August 12, 2011, the Company entered into the 2011 Credit Facilities.  In connection with the 2011 Unsecured Term Loan, the Company issued two tranches of warrants to the lenders under the 2011 Unsecured Term Loan.  The Company accounted for these warrants as derivative liabilities in accordance with ASC 815.

The Company estimated the fair value of these warrants using a simulation approach, under Level 3 of the fair value hierarchy.  The fair value is recorded in other noncurrent liabilities on the balance sheet, with adjustments recorded as other income or expense, net.  The estimated fair value at March 31, 2012 and at the issuance date was $4.0 and $2.9, respectively.

Separately, in connection with the Plan of Reorganization (“Plan”) executed upon our emergence from chapter 11 proceedings, holders of the Predecessor Company’s Senior Subordinated Notes who voted in favor of the Plan received warrants, each eligible to purchase 1.04 shares, as adjusted, of Class A common stock of the Successor Company.  The Company has accounted for these warrants as equity instruments in accordance with ASC 815, and as such, are classified in stockholders’ equity.