KCMVNO files liquidation plan

By Caroline Salls

Pittsburgh, Nov. 24 - KCMVNO, Inc. filed its plan of liquidation and related disclosure statement Monday with the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement, the plan calls for the liquidation of the company's assets, with liquidation proceeds to be distributed to creditors.

The company said the plan contains a settlement with KCMVNO's official committee and pre-bankruptcy lenders under which the lenders have agreed to waive their rights to receive a share of the general unsecured claim distribution fund on account of their pre-bankruptcy lender claims.

Also under the settlement, a liquidation trust will be created to prosecute, collect, compromise and settle causes of action and claims objections.

The trust will distribute the general unsecured claim distribution fund assets.

KCMVNO said it expects to have $1.12 million of cash on hand to fund the plan.

Plan creditor treatment will include:

• Holders of $100,000 to $150,000 in administrative claims, $280,000 to $320,000 in priority tax claims, $75,000 to $125,000 in fee claims and up to $10,000 in other priority claims will recover 100% in cash;

• Holders of miscellaneous secured claims will recover 100% in cash or the return of the collateral securing the claim;

• Holders of $18.16 million in pre-bankruptcy lender claims are slated to recover 13% to 22% of their claims in cash on hand available after all other distributions have been made plus any remaining proceeds from causes of action;

• The distribution for holders of $31.48 million in senior subordinated note claims and $38 million to $40 million in general unsecured claims will depend on the proceeds received from the prosecution of causes of action; and

• Interest holders will receive no distribution.

The disclosure statement hearing is scheduled for Jan. 5.

KCMVNO, formerly Movida Communications, is a Kansas City, Mo.-based mobile virtual network operator that provides wireless services to Hispanic communities. The company filed for bankruptcy on March 31, 2008. Its Chapter 11 case number is 08-10600.

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