Getty Petroleum Marketing amended liquidation plan effective Sept. 24

By Caroline Salls

Pittsburgh, Sept. 25 - The amended plan of liquidation filed by Getty Petroleum Marketing Inc.'s official committee of unsecured creditors took effect on Sept. 24, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the plan was confirmed Aug. 23 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.

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.

Creditor treatment

Treatment of creditors under the plan includes:

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

• Holders of secured claims will receive either 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, 2011. Its Chapter 11 case number is 11-15606.

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