Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Food, Beverage, & Tobacco

Florida Gaming Plan Filed

Florida Gaming filed with the U.S. Bankruptcy Court a Joint Chapter 11 Plan of Liquidation and related Disclosure Statement. According to the Disclosure Statement, the Plan provides for the following: “Priority Tax Claims: Each Holder of an Allowed Priority Tax Claim shall be entitled to receive on account of such Allowed Priority Tax Claim, in full satisfaction, settlement and release of and in exchange for such Allowed Priority Tax Claim, payment in full…Class 1 - Centers Claims: Each Holder of an Allowed Centers Claim shall receive payment in full, in cash, of the allowed amount of its Centers Claim…Class 2 - Lenders Holdings Claims: The Holders of Lenders Holdings Claims received a partial Distribution (or were deemed to have received a partial Distribution) in respect of the Lenders Holdings Claims pursuant to the Settlement Agreement and Sale Order and shall receive no further Distribution pursuant to the Plan. Class 3 - Non-Subordinated Holdings Claims: Each Holder of an Allowed Non-Subordinated Holdings Claim shall receive payment, in Cash, of its Pro Rata share of (a) the Initial Holdings Distribution Amount; (b) (i) the Centers Claim Remainder, if any, and (ii) that portion of the Administrative Claim Remainder, if any, distributable to the Estates of the Debtors pursuant to section 6 of the Settlement Agreement, in each case pursuant to the terms of the Settlement Agreement; and (c) the proceeds of Causes of Action; including in respect of the D&O Claims (net of Post Confirmation Administrative Claims related thereto), and (d) the proceeds (net of Post Confirmation Administrative Claims) from the liquidation of the balance of the Creditor Trust Assets…Class 4 - Subordinated Holdings Claims: Each Holder of an Allowed Subordinated Holdings Claim, shall receive payment, in Cash, of its Pro Rata share of the Subordinated Holdings Claim Remainder, if any…Class 5 - Centers Equity Interests: The Holders of Centers Equity Interests shall receive Distributions on account of such Interests pursuant to this Plan from the net proceeds of Causes of Action, if any, after payment in full of all Allowed Claims in Class 1…Class 6 - Holdings Preferred Equity Interests: Each Holder of an Allowed Holdings Preferred Equity Interest shall receive payment, in Cash, of its Pro Rata share of the Holdings Preferred Equity Interest Remainder, if any. Class 7 - Holdings Equity Interests: Each Holder of an Allowed Holdings Equity Interest shall receive shall receive payment, in Cash, of its Pro Rata share of the Holdings Equity Interest Remainder, if any.” The Debtors have selected Soneet R. Kapila to act as creditor trustee commencing on the Plan’s effective date. The Disclosure Statement asserts, “If the Plan is not confirmed with respect to any of the Debtors, the following alternatives are available: (a) conversion of these Chapter 11 Cases to cases under Chapter 7 of the Bankruptcy Code; or (b) dismissal of these Chapter 11 Cases leaving creditors and interest holders to pursue available non-bankruptcy remedies. These alternatives to the Plan are very limited and not likely to benefit creditors.”

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