Vineyard National Bancorp out of bankruptcy as plan takes effect

By Caroline Salls

Pittsburgh, Aug. 27 - Vineyard National Bancorp's plan of liquidation took effect on Thursday, according to a filing with the U.S. Bankruptcy Court for the Central District of California.

The plan was confirmed on Aug. 6.

Under the plan, all of Vineyard's 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 liquidating trust cash;

• Holders of subordinated indenture trustee fee claims will receive a share of cash in accordance with the general unsecured claim distribution;

• Holders of preferred stock interests will receive no distribution unless subordinated trustee fee claims are paid in full; and

• Holders of common stock interests will receive no distribution unless holders of preferred stock interests are paid in full.

Vineyard National, the Corona, Calif., holding company for Vineyard Bank, filed for bankruptcy on July 21, 2009. Its Chapter 11 case number is 10-21661.

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