Vineyard National's plan of liquidation confirmed by bankruptcy court

By Lisa Kerner

Charlotte, N.C., Aug. 6 - Vineyard National Bancorp's plan of liquidation was confirmed by the U.S. Bankruptcy Court for the Central District of California on Friday, according to an attorney close to the case.

In November Vineyard filed its plan under which all of its assets will be liquidated and proceeds will be distributed to creditors by a liquidating trustee.

Treatment of creditors will include:

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

• Holders of secured claims will either be paid in full in cash or receive the property securing the claim;

• Holders of general unsecured claims will receive a share of net estate cash proceeds; and

• Holders of preferred stock interests and common stock interests will receive no distribution.

As previously reported, the Federal Deposit Insurance Corp. had objected to the plan.

Vineyard National, the Corona, Calif., holding company for Vineyard Bank, filed for bankruptcy on July 21, 2009. Its Chapter 11 case number is 09-26401.

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