MMFX Technologies reorganization plan effective date is Aug. 8

By Jim Witters

Wilmington, Del., Aug. 9 - MMFX Technologies Corp.'s reorganization plan became effective Aug. 8, according to documents filed Tuesday in the U.S. Bankruptcy Court for the Central District of California.

The plan confirmation date was July 22.

Under the restructuring, Fourth Third and Investment Funding will convert their general unsecured claims to equity and provide an amended exit facility of $1.082 million.

MMFX said previously the exit facility would provide a minimum of $1 million to fund payment of general unsecured claims, priority tax claims and priority non-tax claims. The company said this would be enough to make a minimum 60% distribution to general unsecured creditors.

Treatment of creditors includes:

• Holders of administrative claims, priority tax claims, priority non-tax claims and secured claims will be paid in full;

• Holders of general unsecured claims will be paid using exit financing proceeds;

• Fourth Third and Investment Funding and any other holder of a general unsecured claim that elects equity in lieu of a cash distribution will receive a share of 100% of the new common interests in the reorganized company;

• Inter-company claims will either be reinstated or discharged and extinguished at Fourth Third's discretion; and

• Interest holders will receive no recovery.

MMFX, an Irvine, Calif.-based materials science company, filed for bankruptcy on Dec. 14, 2010. The Chapter 11 case number is 10-10083.

© 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.