Strike’s Chapter 11 plan of liquidation effective as of June 6

By Sarah Lizee

Olympia, Wash., June 7 – Strike, LLC’s Chapter 11 plan of liquidation became effective on Monday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the plan, which was confirmed on May 17, was accepted by all six classes of general unsecured creditors.

The company sold its assets to Strike Acquisition LLC, an affiliate of American Industrial Partners (AIP).

The plan provides for the satisfaction in full of all senior claims, including administrative claims, priority tax claims, priority non-tax claims and secured claims.

Holders of general unsecured claims will receive interests in a liquidating trust that will administer and liquidate all remaining property of the debtors. Non-AIP parties are expected to receive a recovery of 1.2% to 2.7%, plus distributions, if any, from the liquidating trust proceeds.

Among other things, the liquidating trust is expected to prosecute certain causes of action of the debtors not sold, assigned or otherwise released on or before the effective date of the plan, including litigation claims against the debtors’ former officers and directors.

Intercompany claims will be either reinstated or adjusted, set off, released or otherwise addressed with no distribution.

All intercompany interests other than those in the wind-down debtors will be canceled with no distribution. The intercompany interests in the wind-down debtors will be reinstated for administrative purposes only, provided that the interests in Strike, LLC will be transferred to the liquidating trust.

Holders of STH ShellCo interests will receive no distribution.

Section 510(b) claims will be canceled.

Under the plan, AIP waived its right to receive a recovery on account of its roughly $175 million general unsecured claim until after the total recovery to all other general unsecured claims exceeds 7.5%.

Strike is based in The Woodlands, Tex., and is a full-service pipeline, facilities and energy infrastructure solutions provider. The company filed Chapter 11 bankruptcy on Dec. 6, 2021 under case number 21-90054.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.