City of Glendale proposes plan of liquidation for Dewey Ranch

By Jennifer Lanning Drey

Portland, Ore., June 17 - The City of Glendale, Ariz.., filed a proposed plan of liquidation for Dewey Ranch Hockey, LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Arizona.

Under the plan, a liquidating trust will be formed to distribute the company's remaining funds.

Additionally, distributions will be funded from the proceeds of any litigation claims.

According to the disclosure statement for the plan, "the heart of the plan" is that insider claims would be transferred to the liquidating trust to be investigated by an independent liquating trustee for the benefit of the company's creditors.

Creditor treatment

Creditor treatment under the plan includes:

• Holders of administrative, priority tax and secured claims will receive a full cash recovery;

• Holders of Coyotes Hockey other priority claims will also receive a full cash recovery;

• Holders of Coyotes Hockey general unsecured claims will receive their share of any remaining cash after the administrative, priority tax, secured and other priority claims have been paid in full, and their share of tier one trust beneficial interests;

• Holders of equity interests in Coyotes Hockey will their share of any remaining cash after administrative, priority tax, secured, other priority claims and general unsecured claims have been paid in full, and the tier two trust and beneficial interests; and

• Holders of intercompany claims will have their claims fully reinstated.

Dewey Ranch Hockey, LLC, Arena Management Group, LLC, Coyotes Holdings, LLC and Coyotes Hockey, LLC are the owners of the Phoenix Coyotes NHL team. The owners filed for bankruptcy on May 5, 2009. Their Chapter 11 case number is 09-09488.

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