Former Diamond Glass files plan of liquidation

By Caroline Salls

Pittsburgh, Aug. 15 - DG Liquidation Corp., formerly known as Diamond Glass, Inc. filed its plan of liquidation and related disclosure statement Friday with the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement, the company's assets will be liquidated, and the proceeds of asset sales, avoidance actions and other causes of action will be distributed to creditors.

A plan administrator will be appointed to make distributions and wind up the company's affairs.

Plan creditor treatment will include:

• Holders of administrative claims, priority tax claims, other priority claims and fee claims will be paid in full in cash;

• The debtor-in-possession financing claim will be satisfied through the purchase of the company's assets;

• Holders of miscellaneous secured claims will receive either the collateral securing the claim or the proceeds from the sale of the collateral;

• Holders of general unsecured claims will receive their share of the plan assets after the administrative, priority, fee, DIP facility and miscellaneous other secured claims are paid in full; and

• Interest holders will receive no distribution under the plan.

The bankruptcy court approved the company's name change on Friday.

DG Liquidation, a Kingston, Pa., automotive glass replacement and repair company, filed for bankruptcy on April 1. Its Chapter 11 case number is 08-10601.

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