Getty Petroleum: Creditors committee disclosure statement approved

By Lisa Kerner

Charlotte, N.C., May 31 - Getty Petroleum Marketing Inc.'s official committee of unsecured creditors had its disclosure statement approved by the U.S. Bankruptcy Court for the Southern District of New York on Thursday, according to an attorney familiar with the case.

The hearing to confirm the creditors' plan of liquidation is scheduled for July 18.

As previously reported, the committee said the plan calls for all of Getty's property to be liquidated over time and for the proceeds to be distributed to creditors.

Getty's assets will be held by a liquidating trust under the plan, and a liquidating trustee will liquidate the assets, resolve disputed claims, prosecute any reserved causes of action, wind up the company's affairs and make distributions.

Treatment of creditors will include:

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

• The holder of the Getty Realty super-priority claim will be paid in full in cash, and, if the claim is not paid in full in cash on the plan effective date, the holder will receive beneficial interests in the liquidating trust entitling it to receive any cash that may be deposited in a Getty Realty reserve;

• Holders of secured claims will either receive cash or the collateral securing their claims;

• Holders of general unsecured claims will receive beneficial interests in the liquidating trust entitling them to receive a share of any cash deposited in a general unsecured claims reserve;

• Intercompany claims will be offset, contributed or distributed to the applicable debtor, and holders will receive no other distribution; and

• All interests will be canceled and extinguished, and interest holders will receive no distribution.

Getty Petroleum, an East Meadow, N.Y., distributor of motor and heating fuels, filed for bankruptcy on Dec. 5. Its Chapter 11 case number is 11-15606.

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