According to the U.S. Bankruptcy Court docket, Affirmative Insurance Holdings filed a Combined Disclosure Statement and Chapter 11 Plan of Liquidation, which states, “Because the Plan is a plan of orderly liquidation, each Class of Creditors will receive substantially the same treatment it would receive if the Debtors’ assets were liquidated pursuant to chapter 7 of the Bankruptcy Code, except that the Estates will neither be taxed with the additional expenses and commissions of a chapter 7 trustee nor delayed by such a trustee’s appointment and need to become familiar with these complex Chapter 11 Cases. The Debtors will include in the Plan Supplement a liquidation analysis, prepared by the Debtors’ financial advisors, reflecting a greater distribution to Creditors pursuant to the Plan than Creditors would receive in a hypothetical chapter 7 liquidation.”
The Combined Plan continues, “Pursuant to the JCF Exit Financing Agreement, which will become effective upon the Effective Date of the Plan, JCF has agreed to extend a term loan from the Cash held in the DACA 2 Account to the Litigation Trust in the aggregate principal amount of $350,000. Up to $175,000 of proceeds from the JCF Exit Financing may be used to pay allowed Administrative Expenses and Professional Claims….In exchange for full and final satisfaction, settlement, release, and compromise of the Florida Adversary Proceeding, as soon as reasonably practicable after the Effective Date, the Litigation Trustee shall make a Distribution in Cash in the amount of $3,955.94 to the Florida Department of Financial Services.”
The Court scheduled a May 20, 2016 hearing to consider the Combined Plan, with objections due by May 13, 2016. Read more bankruptcy news.
The post Affirmative Insurance Holdings Plan Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.