MMC Precision unsecured creditors committee files plan of liquidation

By Caroline Salls

Pittsburgh, April 21 - MMC Precision Corp.'s official committee of unsecured creditors filed a plan of liquidation for the company's bankruptcy case Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement, the company received court approval to sell substantially all of its assets on June 9, 2009.

From June 29, 2009 forward, the committee said MMC Precision has had no employees and has not operated.

The committee said it filed the plan in an effort to provide a distribution to unsecured creditors and to all administrative creditors.

The plan provides for the distribution of sale proceeds and the creation of a liquidating trust that will administer and liquidate all of the company's remaining property, including avoidance actions and state law causes of action to recover fraudulent transfers.

Treatment of creditors will include:

• Holders of debtor-in-possession facility claims, 503(b)(9) claims, administrative claims and non-tax priority claims will be paid in full;

• Holders of first-lien loan claims have been paid from the proceeds of the company's asset sale. To the extent there is a deficiency claim, in will be treated as a general unsecured claim;

• Holders of general unsecured claims will receive a share of liquidating trust assets when enough assets have been accumulated to make distributions; and

• Holders of intercompany claims and old equity interests will receive no distribution.

Morton, Ill.-based MMC manufactures highly engineered metal components and subassemblies. The company filed for bankruptcy on March 22, 2009. Its Chapter 11 case number is 09-10998.

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