Katy Industries (KII) and its official committee of unsecured creditors filed with the U.S. Bankruptcy Court a Second Amended Combined Disclosure Statement and Chapter 11 Plan of Liquidation.
Documents filed with the Court explain, “On the Effective Date, KII Reorganized Debtor shall issue the New Stock to Investment Recovery Group or its nominee in consideration of the New Stock Payment, or any other purchaser that offers the highest price for the New Stock that is in excess of the New Stock Payment and pays in Cash on the Effective Date. The New Stock shall be the only stock in KII Reorganized Debtor outstanding on the Effective Date after giving effect to the Plan Transactions contemplated in the Plan.”
In addition, “Estimated recovery on litigation assets is taken as the midpoint of estimated recoveries from pending litigation between $0.0 million to $7.0 million. This amount does not include additional causes of action that, if successfully prosecuted, could increase the recovery from litigation assets. At this time, no complete estimates have been made regarding this potential recovery. The approximate $800,000 over-collateralized Workers’ Comp Letter of Credit, which will not be available for a number of years, would only be realizable under a Chapter 11 plan structure. Estimated recovery on miscellaneous preference litigation is calculated at a discount of estimates. Chapter 7 Trustee fees are estimated to be 3.0% of the total available proceeds for distribution. The $100,000 to be received pursuant to Section 9.1.4 of the Plan, which would only be realizable under a Chapter 11 plan structure.”
These dates are fixed: objections to confirmation of the Plan by April 16, 2018, and combined hearing on adequacy of disclosures and confirmation of the Plan on April 26, 2018.
Read more KII bankruptcy news.
The post KII Bankruptcy Plan Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.