According to the U.S. Bankruptcy Court docket, the Court confirmed Boomerang Systems’ First Amended Joint Combined Disclosure Statement and Plan of Liquidation.
As previously reported, “The Plan incorporates the PrePetition Lender/ Committee Settlement, which is an integral part of this Plan, and without this Settlement, the Committee would not be willing to: (i) act as a co-proponent of this Plan; or (ii) facilitate the Sale of the Debtors’ Assets as contemplated by this Plan….This Settlement, and the terms of this Plan, represents the best opportunity for unsecured claimants to receive any distribution in these cases. For these reasons, the Official Committee of Unsecured Creditors recommends that all unsecured creditors entitled to vote on the Plan vote to approve this Plan….Absent confirmation of this Plan, the terms and conditions of this carve out may not be available to unsecured creditors, who may be forced to either litigate against the LSA Lenders, or receive distribution only after the LSA Lender Claims are satisfied in full—an unlikely outcome in a forced liquidation in chapter 7.”
The Company, which designs and markets automated parking systems, filed for Chapter 11 protection on August 18, 2015, listing $6 million in pre-petition assets. Read more bankruptcy news.
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