First NBC Bank Holding filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, “The classes of Claims against and Equity Interests in the Debtor shall be treated under the Plan as follows: …Each holder of an Allowed General Unsecured Claim shall receive on the Plan Distribution Date, in satisfaction of its Allowed General Unsecured Claim, Cash in an amount equal to such holder’s Pro Rata Share of the Litigation and Distribution Trust….Class 3 – Equity Interests (Common Stock) Holders of Interests in the Debtor shall have left unaltered the legal, equitable, and contractual rights to which each such Holder is entitled on account of such Interest. Class 4 – Series D Preferred Equity Interests Holders of Interests in the Debtor shall have left unaltered the legal, equitable, and contractual rights to which each such Holder is entitled on account of such Interest. 5 Class 5 – Series E Preferred Equity Interests Holders of Interests in the Debtor shall have left unaltered the legal, equitable, and contractual rights to which each such Holder is entitled on account of such Interest.”
The Company’s official committee of unsecured creditors also filed with the Court its own Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the committee’s Disclosure Statement, “The Committee believes the Debtor and its former auditor (Ernst) engaged in serious mismanagement and wrongdoing. While the exact roles of the Debtor’s former management and Ernst, and the extent of culpability of each, will be determined in litigation that likely will not conclude until after the Effective Date, nevertheless, the Committee lacks confidence that the Debtor, managed and controlled by its prepetition shareholders and directors, will operate the Debtor consistently with the Debtor’s fiduciary duties and the paramount interests of creditors. Accordingly, the Committee seeks confirmation of the Plan, which divests the Debtor’s shareholders and current management from any control over the Debtor after the Effective Date and does so in a way that may preserve the Debtor’s net operating losses (‘NOL’s’) for monetization after the Effective Date..”
In addition, “In contrast, the Committee’s Plan promises creditors no more than the Committee believes creditors can achieve….The Plan contemplates creditors, and not the Debtor’s existing shareholders and directors, will control the Reorganized Debtor’s operations and finances. Additionally, Allowed General Unsecured Claims will be hold interests in a Litigation Trust that will pursue the Former Officer and Director Claims as well as the Ernst Claims for the benefit of holders of interests in the Litigation Trust.”
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