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 / Bonds / Investment Topics

SquareTwo Financial Plan Filed, Disclosure Statement Approved & Plan Confirmed

SquareTwo Financial filed with the U.S. Bankruptcy Court a Modified Joint Prepackaged Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, "The Plan provides for the comprehensive settlement of Claims and controversies against the Debtors. The negotiations of such settlements were conducted in good faith and at arm's length, and each such settlement is of benefit to the Debtors' Estates and represents a fair, necessary and reasonable compromise of the Claims held by the holders thereof. The settlements will save the Debtors and their Estates the costs and expenses of prosecuting various disputes, the outcome of which would likely consume substantial resources of the Debtors' Estates and require substantial time to adjudicate….Pursuant to Section 7.2 of the Plan, the Reorganized Debtors are authorized to sell to the Plan Investor one hundred (100%) of the Interests in (a) Reorganized CACH and Reorganized CACV of Colorado, and (b) to the Canadian Purchase Co from Collect America of Canada, 35,000 shares of stock of Reorganized SquareTwo Financial Canada Corporation, which represents one hundred (100%) of the issued and outstanding equity of Reorganized SquareTwo Financial Canada, as well as any other obligations to the Plan Investor under the Plan Funding Agreement and the Plan. Any difference between the Closing Purchase Price and the Final Purchase Price shall be received by or paid to Wind Down Co in accordance with the Plan Funding Agreement. From and after the Effective Date, (x) the Plan Investor and/or any permitted assignee shall directly and indirectly own the Acquired Debtors, and (y) Wind Down Co shall own the other Dissolving Debtors. On the Effective Date, all Cash of the Debtors, including cash and cash equivalents of the Canadian Debtors, shall be transferred to Wind Down Co or remain with the Dissolving Debtors. After the Effective Date, the Plan Investor shall return to Wind Down Co any cash or cash equivalents pledged to secure surety bonds, letters of credit and other deposits outstanding as of the Effective Date. Holders of Second Lien Lender Claims, U.S. General Unsecured Claims and Existing U.S. Interests shall not receive or retain any distribution under the Plan on account of such Claims and Interests." The Court subsequently approved the Disclosure Statement and confirmed the Plan. This accounts receivable accounts collector and manager filed for Chapter 11 protection on March 19, 2017, listing $308 million in pre-petition assets.

Read more Bankruptcy News