Getty Petroleum committee files liquidation plan for Chapter 11 case

By Caroline Salls

Pittsburgh, April 25 - Getty Petroleum Marketing Inc.'s official committee of unsecured creditors has proposed a plan of liquidation and related disclosure statement for the company's Chapter 11 bankruptcy case, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The committee said the plan calls for all of the company's property to be liquidated over time and for the proceeds to be distributed to creditors.

Getty's assets will be held by a liquidating trust under the plan, and a liquidating trustee will liquidate the assets, resolve disputed claims, prosecute any reserved causes of action, wind up the company's affairs and make distributions.

Treatment of creditors will include:

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

• The holder of the Getty Realty super-priority claim will be paid in full in cash, and, if the claim is not paid in full in cash on the plan effective date, the holder will receive beneficial interests in the liquidating trust entitling it to receive any cash that may be deposited in a Getty Realty reserve;

• Holders of secured claims will either receive cash or the collateral securing their claims;

• Holders of general unsecured claims will receive beneficial interests in the liquidating trust entitling them to receive a share of any cash deposited in a general unsecured claims reserve;

• Intercompany claims will be offset, contributed or distributed to the applicable debtor and holders will receive no other distribution; and

• All interests will be cancelled and extinguished and interest holders will receive no distribution.

The disclosure statement hearing is scheduled for May 31.

Getty Petroleum, an East Meadow, N.Y., distributor of motor and heating fuels, filed for bankruptcy on Dec. 5. Its Chapter 11 case number is 11-15606.

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