Modern Continental Construction's plan of liquidation confirmed

By Caroline Salls

Pittsburgh, Sept. 17 - Modern Continental Construction Co., Inc.'s plan of liquidation was confirmed Thursday by the U.S. Bankruptcy Court for the District of Massachusetts.

The plan was previously approved in August, but the company later asked the court to vacate that order to give Modern Continental and its liquidating supervisor enough time to seek the assumption of any executory contracts.

Under the plan, the company's assets will continue to be liquidated, and net proceeds will be distributed to creditors. Craig Jarlbert has been selected as the liquidating supervisor.

Funding for the plan will also be provided by a Travelers advance, a carve-out and net proceeds from avoidance actions.

The Travelers advance will fund the post-effective date administration of the reorganized company and will provide $100,000 toward payment of priority and priority tax claims.

Creditor treatment will include:

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

• Holders of Travelers secured claims will receive a portion of shared collateral and the net proceeds from the sale of the collateral securing their claims;

• Holders of bank group secured claims will receive the net proceeds from the sale of the collateral securing their claims and will retain their liens;

• Holders of miscellaneous secured claims will either be paid in full in cash or through the return of the collateral securing their claims;

• Holders of general unsecured claims will receive one or more distributions from a PRT carve-out and the net proceeds of avoidance actions after all senior classes have been paid in full; and

• Holders of United States of America claims and equity interests will receive one or more distributions from a PRT carve-out and the net proceeds of avoidance actions.

Modern Continental, a Dedham, Mass., contractor, filed for bankruptcy on June 23, 2008. Its Chapter 11 case number is 08-14558.

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