Getty Petroleum Marketing's second amended liquidation plan confirmed

By Jim Witters

Wilmington, Del., Aug. 24 - The second amended plan of liquidation filed by Getty Petroleum Marketing Inc.'s official committee of unsecured creditors was confirmed Aug. 23, according to documents filed with the U.S. Bankruptcy Court for the Southern District of New York.

The confirmation came a week after a contentious hearing before judge Shelley Chapman, during which some creditors alleged "bad faith" and "vote manipulation" during the plan balloting process.

Chapman overruled those objections.

Plan provisions

Getty's assets will be held by a liquidating trust. 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 under the plan includes:

• 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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