Espre Solutions disclosure statement approved; plan confirmation hearing April 29

By Jennifer Lanning Drey

Portland, Ore., March 26 - Espre Solutions, Inc. was granted court approval of the disclosure statement for its plan of reorganization Thursday from the U.S. Bankruptcy Court for the Northern District of Texas, according to an attorney.

The plan confirmation hearing is scheduled for April 29.

As previously reported, the plan calls for the proposed sale of all of Espre's equity through an auction.

The initial bid is $4 million and is comprised of Dalcor, Inc.'s secured claim.

Overbids must be made in $100,000 increments.

Creditor treatment

Creditor treatment under the plan will include:

• Treatment of the Dalcor secured claim will depend on whether Dalcor the wins the equity auction. If Dalcor is the winning interest acquisition bid, it will receive the new Espre common stock in exchange for its claim. If Dalcor is not the winner at auction, its claim will be satisfied in cash;

• Holders of priority unsecured claims will receive a full cash recovery;

• Holders of general unsecured claims will receive their share of the remaining proceeds of the winning interest acquisition bid after the provision for the reserves required to be made for allowed administrative expenses of professionals, assumption cure costs and the litigation fund are met, and their share from any recoveries generated from claims and causes of action, and if applicable, the liquidated damages from a winning interest acquisition bid that does not close;

• Holders of Dalcor subordinated unsecured claims will receive a distribution of the remaining proceeds of the winning interest acquisition bid and distribution from any claims and causes of action but only after the general unsecured claims have been paid;

• Allowed interests will be canceled. If the bid threshold is met, they will receive their share of distribution of the remaining proceeds of the winning interest acquisition bid and any remaining distribution from claims and causes of action; and

• Holders of claims secured by a right of set off will be allowed to take the set off if their proof of claim is not contested by the company or the litigation agent prior to the plan distribution date.

Espre, a Dallas-based video media technology company, filed for bankruptcy on Jan. 30. Its Chapter 11 case number is 09-30572.

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