Majestic Capital amended plan of liquidation takes effect on May 18

By Caroline Salls

Pittsburgh, May 21 - Majestic Capital, Ltd.'s amended plan of liquidation took effect on Friday, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The plan, which was confirmed on April 27, is designed to facilitate the wind-down of Majestic Capital and its two non-debtor insurance company affiliates, as well as to resolve more than 2,000 claims filed in the Chapter 11 cases.

Trusts will be established under the plan to liquidate the company's assets, resolve disputed claims and make plan distributions.

Treatment of creditors will include the following:

• Holders of administrative claims and priority tax claims will be paid in full in cash by a liquidating trustee;

• Holders of priority non-tax claims will be paid in cash from any net liquidating trust proceeds;

• Holders of secured claims will either receive the collateral securing their claims, receive the net proceeds from the liquidation of that collateral or have their claims reinstated;

• Holders of non-priority unsecured claims will receive a share of net liquidating trust proceeds after reduction for a distribution reserve; and

• Interest holders will retain their interests but will not receive any distribution unless holders of non-priority unsecured claims are paid in full.

Majestic Capital, a Bermuda-based specialty provider of workers' compensation insurance, filed for bankruptcy on April 29, 2011. The Chapter 11 case number is 11-36225.

© 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.