According to the U.S. Bankruptcy Court docket, SG Blocks filed a Plan of Reorganization and related Disclosure Statement.
Under the Disclosure Statement, holders of all allowed priority tax claims shall be paid on the effective date; holders of priority non-tax claims paid in full on the effective date; holders of D.I.P. lender secured claim paid in full on the effective date; holders of prepetition lender secured claim shall be paid shall receive 100% of a newly-issued convertible preferred stock; holders of general unsecured claims shall receive distribution of 100% of its allowed claim payable as follows: 50% of its allowed claim on the effective date, 25% at the conclusion of the next full fiscal quarter of the reorganized debtor after the effective date and the remaining 25% of its allowed claim at the conclusion of the second full fiscal quarter. Shares of stock held by each holder of interests in the Debtors shall be cancelled and replaced by such holder’s pro rata share of 100% of the new common stock in the reorganized debtors that is outstanding at the effective date.
On the Plan’s effective date, the $5,405,010 of Pre-Petition Secured Debt will be exchanged and converted into 5,405,010 shares of new Series A Convertible Preferred Stock, par value of $1.00 per share, of SG Blocks. Each share of Series A Convertible Preferred Stock is convertible into one share of common stock of SG Blocks upon: (i) a change of control, or (ii) a majority vote of the Series A Convertible Preferred Stock to convert. The Series A Convertible Preferred Stock shall have a liquidation preference at $1 per share.
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