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

AgFeed Industries Plan, Shortening Motion Filed

AgFeed Industries filed with the U.S. Bankruptcy Court a Second Amended Chapter 11 Plan of Liquidation and related Disclosure Statement. According to the Disclosure Statement, which has the support of the official committee of equity security holders, “The Debtors believe that their Estates have value that would not be fully realized by Creditors in a chapter 7 liquidation primarily due to: (1) the additional administrative expenses that would be incurred in a chapter 7 liquidation and (2) the additional delay in distributions that may occur if the Debtors’ chapter 11 cases were converted to cases under chapter 7. Accordingly, the Debtors believe that the Estates are worth more to their stakeholders if the Debtors’ liquidation is completed, and Distributions are made, under chapter 11 pursuant to the Plan….The plan provides that, on the effective Date of the Plan, the SEC, in full and final satisfaction of any and all Claims or cause of action it has or may have against any of the Debtors, shall have an allowed claim in the amount of $18 million payable from the AgFeed net distributable cash which the SEC shall immediately contribute to the Liquidating Trust, with $12.5 million designated for Distribution to the Holders of Allowed Class 5B interests and $5.5 million designated for the SEC Fairness Fund established under the Plan for distribution to Allowed Class 6B subordinated claims in accordance with the SEC Fairness Fund Procedures approved by the Bankruptcy Court.” Subsequently, the Debtors filed with the Court a motion for an order shortening the time for notice to consider the Disclosure Statement.

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