Education Resources Institute plan of reorganization effective Nov. 19

By Caroline Salls

Pittsburgh, Nov. 19 - The Education Resources Institute, Inc.'s plan of reorganization took effect on Friday, according to a filing with the U.S. Bankruptcy Court for the District of Massachusetts.

The plan was confirmed on Oct. 29.

The company's assets will be transferred to a plan trust for distribution.

Treatment of creditors will include:

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

• Holders of make and wait lender claims that voted to accept the plan will be treated in accordance with a make and wait lender settlement. If these creditors reject the plan, the collateral accounts securing their claims will not be released unless the court rules that they hold secured claims;

• Holders of securitization trust claims that voted to accept the plan will be treated in accordance with a securitization trust settlement. If these creditors reject the plan, the collateral accounts securing their claims will not be released unless the court rules that they hold secured claims; and

• Holders of general unsecured claims will receive a beneficial interest in a plan trust.

TERI, a Boston non-profit access-to-education promoter, filed for bankruptcy on April 7, 2008. Its Chapter 11 case number is 08-12540.

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