Sturgis Iron & Metal emerges after liquidation plan takes effect

By Caroline Salls

Pittsburgh, June 16 - Sturgis Iron & Metal Co., Inc. emerged from bankruptcy when its plan of liquidation took effect on Monday, according to a filing with the U.S. Bankruptcy Court for the Western District of Michigan.

The plan was confirmed on May 4.

As previously reported, the company sold most of its assets.

James W. Boyd has been named liquidating trustee, according to Monday's filing.

Creditor treatment under the plan will include:

• Holders of lender secured claims were to be paid on the effective date to the extent their claims hadn't been previously satisfied;

• The holder of the Fifth-Third secured claim will receive the proceeds from the sale of the company's Elkhart property;

• Holders of other secured claims will be paid from either funds on hand or from a tax escrow;

• If there was not enough cash to pay all priority claims in full on the effective date, holders of priority claims will receive payments from the company's liquidating trust after the holders of administrative expense and secured claims are paid in full;

• Holders of general unsecured claims will be paid from the liquidating trust after holders of administrative expense claims, secured claims and priority claims are paid in full; and

• Holders of equity interests will receive payments from the liquidating trust only after all other claims are paid in full.

Sturgis, a Sturgis, Mich., scrap metal recycling company, filed for bankruptcy on April 4, 2008. Its Chapter 11 case number is 08-02966.

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