Meruelo Maddux files plan, to receive $10 million investment

By Caroline Salls

Pittsburgh, Dec. 1 - Meruelo Maddux Properties, Inc. filed its plan of reorganization Monday with the U.S. Bankruptcy Court for the Central District of California.

The reorganized company will receive a $10 million new value contribution in exchange for all of the new value equity interests.

Meruelo Maddux said cash needed for plan distributions will come from the reorganized company's existing cash balances on the plan effective date and from Meruelo Maddux's business operations, the sale or refinancing of assets and from an investor new value contribution thereafter.

Treatment of creditors will include:

• Holders of administrative claims and other priority claims will be paid in full in cash;

• Holders of priority tax claims in excess of $800 will be paid in cash over five years with 0.64% interest. Holders of priority tax claims of less than $800 will either be paid in full on the plan effective date or over time with 0.64% interest;

• Holders of secured claims will receive deferred cash payments over up to seven years and will also be entitled to refinance their claims;

• Holders of unsecured convenience claims of $500 or less will be paid in full in cash either on the plan effective date or 30 days after the end of the calendar quarter in which the claim becomes allowed;

• Holders of general unsecured claims against property level debtors will receive deferred cash payments equal to 80% of their claim;

• If one or more of the debtors is merged or consolidated, intercompany claims will be merged and extinguished. If the debtors are not merged, holders of intercompany claims will retain the rights to their claims; and

• Interest holders will receive no distribution.

The disclosure statement hearing is scheduled for Jan. 20.

Meruelo Maddux, a self-managed, full-service real estate company that develops, redevelops and owns commercial and multi-family residential properties, filed for bankruptcy on March 26, 2009. Its Chapter 11 case number is 09-13356.

© 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.