Cred plan of liquidation accepted by both voting creditor classes

By Sarah Lizee

Olympia, Wash., March 4 – Cred Inc.’s Chapter 11 plan of liquidation was accepted by both classes of voting creditors, according to a tabulation summary filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, 405 holders, or 93.97% in number, of $104.8 million, or 79.91% in amount, of general unsecured claims voted to accept the plan, while 26 holders, or 6.03% in number, of $26.35 million, or 20.09% in amount, voted to reject it.

Meanwhile, 359 holders, or 92.29% in number, of $125,030.92, or 95.07% in amount, of convenience class claims voted to accept the plan, while 30 holders, or 7.71% in number, of $6,489.95, or 4.93% in amount, voted to reject it.

A combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for March 9.

The plan provides for distribution of the debtors’ assets already liquidated or set to be liquidated over time to holders of allowed claims.

A liquidation trustee will be appointed to implement the terms of the plan and make distributions.

The debtors said they are in negotiations with potential lenders to provide debtor-in-possession financing. They are also negotiating for the right to convert the DIP financing into an exit financing that would be available to fund expenses of the liquidation trust to the extent it is not repaid on the effective date.

Under the plan, holders of non-professional fee administrative expense claims, professional fee claims, priority tax claims, other priority claims and secured tax claims will be paid in full.

Holders of other secured claims will receive payment in full in cash or the collateral securing their claims.

Holders of general unsecured claims will either receive a cash payment equal to their pro rata share of net distributable assets, or, with respect to any holder that makes a cryptocurrency election, a good faith effort will be made to make distributions in an equivalent cryptocurrency distribution.

Holders of convenience claims will receive cash in an amount equal to 20% of their claims.

Holders of subordinated securities claims and equity interests will not receive any distributions.

Cred is a San Mateo, Calif.-based financial services platform specializing in crypto and fiat currencies. The company filed bankruptcy on Nov. 7 under Chapter 11 case number 20-12836.

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