All Year files second plan, sponsor pushes for January confirmation

Chicago, Nov. 7 – All Year Holdings Ltd. filed a second amended Chapter 11 plan of reorganization with the U.S. Bankruptcy Court for the Southern District of New York.

A status conference was scheduled for Monday afternoon.

Part of the status hearing was to address a date for a confirmation hearing.

All Year was seeking a December confirmation hearing.

As previously reported, in early March, the company entered into a definitive investment agreement with Paragraph Partners LLC, an affiliate of Graph Group LLC and Cammeby’s International Group, to acquire 100% of the equity of the reorganized debtor.

Paragraph Partners thinks that practical issues make a December confirmation impracticable and a January confirmation more likely, according to a letter to the judge in the case.

The sponsor has been working with secured lenders on the assignment of mortgage loans on the subsidiary properties and documentation will need to be in place, or the lenders may object to confirmation.

Also previously reported, the plan investor also agreed to assume all unsecured claims against the debtor other than the claims of holders of its various series of bonds and other discrete categories of claims.

Mishmeret Trust Co. Ltd., as trustee for the bondholders, has indicatively approved of and consented to the company’s entry into the investment agreement.

There is a dispute over timing on signing of the agreement, with both parties needing to sign simultaneously.

Plan

According to the company’s plan, and previously revealed in the disclosure statement, administrative expense claims and fee claims will be paid in full.

Priority tax claims will be satisfied, disputed, pursued or otherwise reconciled.

Priority non-tax claims, other secured claims and general unsecured claims are unimpaired by the plan.

Holders of remaining general unsecured claims will receive an estimated 11% to 17% recovery. Holders will receive a pro rata share of the class 4 ED distribution; in the event the William Vale purchase occurs after the effective date, a pro rata share of any additional new notes issues; and amounts recovered from excluded assets (including from prosecution of avoidance actions or other causes of action) and any remaining wind-down cash funding, if any.

Holders of subordinated securities claims and equity interests will receive no recovery.

Following confirmation of the plan in the U.S. court, the debtors plan to seek recognition of the plan in the company’s Israeli recognition proceeding. It will also seek authority from the British Virgin Islands court to implement a plan of arrangement.

All Year focuses on the development, construction, acquisition, leasing and management of residential and commercial income producing properties in Brooklyn, N.Y. It filed Chapter 11 bankruptcy on Dec. 14, 2021 under case number 21-12051.

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