East Coast Brokers Chapter 11 trustee proposes plan of liquidation

By Caroline Salls

Pittsburgh, Dec. 8 – East Coast Brokers & Packers, Inc. Chapter 11 trustee Gerard A. McHale Jr. filed a plan of liquidation and related disclosure statement for the company’s bankruptcy case Monday with the U.S. Bankruptcy Court for the Middle District of Florida.

McHale said the auctions and sales of the East Coast debtors’ real property yielded $67.45 million in gross proceeds, and personal property auctions yielded gross proceeds of $7.58 million.

On the plan effective date, each liquidating debtor will transfer all of its liquidating assets to a plan administrator, who will have all of the powers of a Chapter 7 trustee.

Treatment of creditors will include:

• Internal Revenue Service, Commonwealth of Virginia, Department of Taxation and Florida Department of Revenue claims will be treated in accordance with settlement agreements;

• Holders of secured claims will be paid in full in cash or receive the collateral securing the claim;

• Priority claims will be paid in full in cash;

• Holders of general unsecured claims will receive a share of all of the company’s assets after specified payments are made, for a potential distribution of 8% to 12%; and

• Interest holders will receive no distribution.

Mulberry, Fla.-based former tomato grower-shipper East Coast Brokers & Packers filed bankruptcy on March 6, 2013 under Chapter 11 case number 13-02894.

© 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.