Shiloh Industries disclosure statement approved; plan hearing May 6

By Sarah Lizee

Olympia, Wash., March 25 – Shiloh Industries, Inc.’s disclosure statement for its Chapter 11 plan of liquidation was approved by the U.S. Bankruptcy Court for the District of Delaware, according to an order filed Thursday.

A hearing on confirmation of the plan is scheduled for May 6.

On the effective date, the debtors will be dissolved and a liquidating trust will be established for the purpose of liquidating the debtors’ assets; resolving all disputed claims, except for general unsecured claims; making distributions to holders of allowed claims; and otherwise implementing the plan, as previously reported.

Under the plan, administrative claims and priority tax claims will be paid in full.

Holders of priority claims will receive payment in full in cash from the liquidating trust.

Holders of other secured claims will receive cash in full, the collateral securing their claims, or, to the extend applicable, the same treatment as holders of priority tax claims.

Holders of pre-petition credit agreement claims will receive their pro rata share of the class 3 distributable funds, which includes any amount in the debtor liquidating trust, other than the portion of the proceeds of any shared assets to be distributed to holders of class 4 claims under a contribution split, remaining after the debtors satisfy senior claims.

Holders of general unsecured claims will receive their pro rata share of unencumbered cash, unless the holder of a general unsecured claim is a pre-petition lender, as those holders have waived their rights to receive any distributions from the unencumbered cash; and their share of the proceeds of any shared assets based upon any contribution split.

All outstanding stock interests of the debtors will be canceled with no distribution.

Shiloh Industries is a metal processing company based in Valley City, Ohio. The company filed Chapter 11 bankruptcy on Aug. 30, 2020 under case number 20-12024.

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