Advantage Holdco gets confirmation of Chapter 11 liquidation plan

By Sarah Lizee

Olympia, Wash., Dec. 10 – Advantage Holdco, Inc.’s Chapter 11 plan of liquidation was confirmed on Friday by the U.S. Bankruptcy Court for the District of Delaware, according to a minute entry.

Under a settlement between the official committee of unsecured creditors and the debtor-in-possession lender, the debtors will contribute cash and some other assets of their estates to a liquidating trust to be used to satisfy the claims of the debtors’ general unsecured creditors. The trust will be funded from collateral securing the DIP loans and other assets of the debtors’ estates.

Any assets not transferred to the liquidating trust will be conveyed to the DIP lender in satisfaction of DIP claims.

The plan provides for no distribution on account of Holdco equity interests.

Holders of miscellaneous secured claims will receive the collateral securing their claims, cash equal to their claims, or other treatment that leaves their claims unimpaired.

Holders of other priority claims will receive payment in full in cash.

Holders of sponsor debt claims will receive the proceeds of the residual assets available after the DIP claims.

Holders of Texas taxing authority claims will receive a payment in cash equal to 15% of their claims.

Holders of Aberdeen claims will not be entitled to any distributions.

Advantage Holdco is an Orlando, Fla.-based rental car company. The company filed bankruptcy on May 26, 2020 under Chapter 11 case number 20-11259.

© 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.