Newland International Properties pre-packaged plan effective July 3

By Caroline Salls

Pittsburgh, July 5 - Newland International Properties, Corp.'s pre-packaged plan of reorganization took effect on July 3, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The plan was confirmed on May 30.

Treatment of creditors under the plan includes:

• Administrative claims and other priority claims will be paid in full in cash;

• Priority tax claims will be treated in accordance with the Bankruptcy Code;

• Holders of pre-bankruptcy senior secured note claims will receive new 9½% notes in an amount equal to the principal amount of their notes claims plus interest accrued through the plan effective date.

The company said its existing construction completion support agreement will be terminated and all obligations released provided that the obligors will provide a new $5 million limited financial guarantee of some of Newland's obligations under the new notes; and

• To the extent that a holder of an allowed general unsecured claim has not been paid in full as of the plan confirmation date, the claim will be reinstated, paid in full or otherwise rendered unimpaired.

Panama City-based Newland develops property projects under the Trump Ocean Club International Hotel & Tower name on land owned by Ocean Point Development, Corp. The Chapter 11 case number is 13-11396.

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