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 Plan Effective, Liquidating Trust Agreement Filed's First Amended Joint Plan of Liquidation became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on September 20, 2017. BankruptcyData Plan Summary notes, "The Debtors have sold substantially all of its assets to VB Funding, LLC, and intend to pay all allowed claims, hold funds for disputed claims, and create a trust for the benefit of holders of allowed claims against the Debtors, through a contribution from VB Funding, LLC and the net proceeds recovered from Litigation Claims (the 'Liquidating Trust'). VB Funding, LLC has agreed to fund the Liquidating Trust with a cash contribution of $200,000 for general trust operations, plus an additional $50,000 specifically earmarked for distribution to Class 3 General Unsecured Claims. VB Funding, LLC has also agreed to release its lien on the Lender Collateral and subordinate its right to equity distributions to all other shareholders under Class 5 of the Plan. Finally, VB Funding, LLC has agreed to consensually subordinate its Lender Unsecured Subordinated Deficiency Claim to Class 3 for the first $450,000 of the net proceeds of the Litigation Claims after payment of Lender's Initial Share of Litigation Claims Proceeds of $300,000 and in exchange for receiving the Lender Release and Injunction, and Lender's Initial Share of Litigation Claims Proceeds." The Debtors also filed a liquidating trust agreement, which notes, "The Plan provides for the establishment of the liquidating trust evidenced hereby to liquidate the assets and property of the Debtors in accordance with the terms and conditions of the Plan and to resolve and realize upon certain of the Debtor's rights, claims and causes of action through enforcement by the Liquidating Trustee." This family-oriented social media company filed for Chapter 11 protection on April 14, 2017, listing $6 million in pre-petition assets. Visit BankruptcyData for the full Plan Summary.

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