Espre Solution plan of reorganization becomes final

By Caroline Salls

Pittsburgh, May 13 - Espre Solutions, Inc.'s plan of reorganization became final on Tuesday, according to an 8-K filed with the Securities and Exchange Commission.

As previously reported, the plan was confirmed on April 30 by the U.S. Bankruptcy Court for the Northern District of Texas. The company said it planned to terminate its registration with the SEC on May 13.

As previously reported, the plan calls for the proposed sale of all of Espre's equity through an auction.

The initial bid is $4 million and is comprised of Dalcor, Inc.'s secured claim.

Creditor treatment

Creditor treatment under the plan will include:

• Treatment of the Dalcor secured claim will depend on whether Dalcor wins the equity auction. If Dalcor is the winning interest acquisition bid, it will receive the new Espre common stock in exchange for its claim. If Dalcor is not the winner at auction, its claim will be satisfied in cash;

• Holders of priority unsecured claims will receive a full cash recovery;

• Holders of general unsecured claims will receive their share of the remaining proceeds of the winning interest acquisition bid after the provision for the reserves required to be made for allowed administrative expenses of professionals, assumption cure costs and the litigation fund are met and their share from any recoveries generated from claims and causes of action and, if applicable, the liquidated damages from a winning interest acquisition bid that does not close;

• Holders of Dalcor subordinated unsecured claims will receive a distribution of the remaining proceeds of the winning interest acquisition bid and distribution from any claims and causes of action but only after the general unsecured claims have been paid;

• Allowed interests will be canceled. If a specified bid threshold is met, they will receive their share of distribution of the remaining proceeds of the winning interest acquisition bid and any remaining distribution from claims and causes of action; and

• Holders of claims secured by a right of set off will be allowed to take the set off if their proof of claim is not contested by the company or the litigation agent prior to the plan distribution date.

Espre, a Dallas-based video media technology company, filed for bankruptcy on Jan. 30. Its Chapter 11 case number is 09-30572.

© 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.