Former Diamond Glass disclosure statement approved; plan confirmation hearing Oct. 24

By Jennifer Lanning Drey

Portland, Ore., Sept. 24 - DG Liquidation Corp., formerly Diamond Glass, Inc., obtained court approval of the disclosures statement for its plan of liquidation, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Oct. 24.

As previously reported, 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.

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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