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Liberty Medical Supply plan of liquidation effective Sept. 18
By Caroline Salls
Pittsburgh, Sept. 18 – Liberty Medical Supply, Inc.’s amended Chapter 11 plan of liquidation took effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, the plan was confirmed on July 15.
In November 2014, the company closed a sale of substantially all its assets to Liberty Medical, LLC for $32.5 million in cash and the assumption of up to $35.96 million in liabilities.
All proceeds from company asset sales and settlements will be placed into a liquidating trust to allow for creditor distributions.
Treatment of creditors includes the following:
• Secured claims will either be paid in full in cash, or holders will receive the proceeds from the sale of the corresponding collateral or receive the collateral itself;
• Administrative claims, priority tax claims, non-tax priority claims and U.S. trustee fee claims will be paid in full;
• Holders of general unsecured claims will receive payment in cash of an allowed claim plus interest at a yearly rate of 1½% until the claim is paid in full;
• Holders of Medco Health Solutions, Inc. claims will receive a share of liquidating trust assets after all other claims have been paid in full; and
• Holders of equity interests will receive a share of the liquidating trust assets after payment in full in cash of all other allowed claims and payment of post-bankruptcy interest to general unsecured creditors.
Liberty Medical, a Port St. Lucie, Fla.-based health care products home delivery provider, filed for bankruptcy Feb. 15, 2013. The Chapter 11 case number is 13-10262.
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