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A’GACI – Plan Effective

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August 3, 2018 – A’GACI’s Second Amended Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection [Docket No. 507]. The Court hearing the A’GACI case had previously confirmed the Plan on July 27, 2018 [Docket No. 496]. Pursuant to terms of the Court-approved Plan, secured creditors (ie creditors with claims in Classes 1-5) will receive 100% recoveries. In respect of Class 6 (unsecured claims), A’GACI ‘s Plan notes the following “Except to the extent that a holder of an Allowed General Unsecured Claim agrees to less favorable treatment, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for each General Unsecured Claim, each holder of an Allowed Class 6 Claim shall receive (i) its Pro Rata share of the Class 6 Note and (ii) its Pro Rata share of the cash proceeds, if any, from the Contingent Payment Agreement. The Debtor has provided a preliminary estimate of General Unsecured Claims, including rejection damages, in the Recovery Analysis attached hereto as Exhibit 4.Estimated total Allowed Class 6 Claims: $18.1 million to 19.1 million. Projected recovery: Approximately 20.9% to 22.1%.”

As previously reported [Docket No. 488], “On the Effective Date, Reorganized Debtor shall enter into the Class 6 Note and the Contingent Payment Agreement. Confirmation of the Plan shall be deemed approval of the Class 6 Note and the Contingent Payment Agreement, and all transactions contemplated thereby, and all actions to be taken, undertakings to be made, and obligations to be incurred by the Reorganized Debtor in connection therewith, and authorization of the Reorganized Debtor to enter into and execute the Class 6 Note and the Contingent Payment Agreement. On the Effective Date, the Class 6 Note and the Contingent Payment Agreement shall constitute legal, valid, binding, and authorized obligations of the Reorganized Debtor, enforceable in accordance with their terms…No later than two (2) Business Days after the Confirmation Date, Chase shall provide the Debtor with the Chase Payoff Letter. The Chase Payoff Letter shall establish the Allowed amount of the Chase Secured Claim for purposes of its treatment under the Plan.”

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