Guaranty Financial's disclosure statement OK'd; plan hearing April 6

By Lisa Kerner

Charlotte, N.C., Feb. 16 - Guaranty Financial Group Inc.'s disclosure statement was approved, according to a Wednesday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

A plan confirmation hearing is set for April 6.

As previously reported, the plan calls for the liquidation of the company's remaining assets and the distribution of assets to creditors.

All estate assets that remain after satisfaction of administrative, priority tax, secured and Federal Deposit Insurance Corp. receiver claims will be distributed to the holders of general unsecured claims through a liquidation trust.

Treatment of creditors will include:

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

• The FDIC receiver will receive $10 million to $12 million in cash, plus 100% of tax refunds and insurance premium refund amounts. The receiver will also have the right to prosecute directors and officers claims and other causes of action;

• Holders of general unsecured claims will receive a beneficial interest in the liquidating trust; and

• Interest holders will receive no distribution.

Guaranty Financial, a Dallas-based unitary thrift holding company, filed for bankruptcy on Aug. 27, 2009. Its Chapter 11 case number is 09-35582.

© 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.