GST AutoLeather plan of reorganization confirmed by bankruptcy court

By Caroline Salls

Pittsburgh, April 25 – GST AutoLeather, Inc.’s plan of reorganization was confirmed Wednesday by the U.S. Bankruptcy Court for the District of Delaware.

GST said creditor recoveries will be funded from cash on hand and the proceeds of a sale of substantially all of the assets of its estates.

According to the disclosure statement, the plan provides for the full resolution of some funded debt obligations, designates a plan administrator to wind down the GST debtors’ affairs and pay and reconcile claims, provides for distributions from an unsecured cash pool to holders of unsecured claims and pays holders of administrative claims, priority tax claims, debtor-in-possession financing claims, other priority claims and other secured claims in full.

Specifically, unsecured creditors will receive a share of 75% of the cash pool, equal to $1.58 million, 75% of the proceeds from retained causes of action and a share of any excess distributable cash.

Pre-bankruptcy secured lender claims will be satisfied, compromised, settled, released and discharged in full in exchange for a credit bid, and each lender will receive a share of any excess distributable cash and proceeds of retained causes of action.

Holders of mezzanine lender claims will receive a share of 25% of the unsecured cash pool, equal to $525,000, and 25% of the proceeds of retained causes of action. These creditors will also receive a share of any excess distributable assets.

Existing holding company interests will be cancelled without any distribution to holders.

GST, a Southfield, Mich.-based automotive leather manufacturer, filed bankruptcy on Oct. 3, 2017. The Chapter 11 case number is 17-12100.

© 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.