Former OCZ Technology plan of liquidation receives court confirmation

By Kali Hays

New York, July 30 – ZCO Liquidating Corp. obtained confirmation of its Chapter 11 plan of liquidation on Wednesday from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the court approved a disclosure statement related to the plan on June 12.

The plan allows for the liquidation of any remaining assets and establishes a liquidation trust that will be responsible for the transfer and monetization of the remaining assets to creditors.

Treatment of creditors under the plan will include the following:

• Allowed unclassified claims, other secured claims and other priority claims will be paid in full in cash;

• Holders of debenture claims will receive a share of an initial class III distribution, and any and all net proceeds, except litigation proceeds, from the liquidation of trust assets, a liquidation trust funding loan repayment and remaining litigation proceeds;

• Hercules Technology Growth Capital, Inc.'s will be paid from the first litigation proceeds remaining, if any, immediately upon payment in full of the liquidation trust funding loan or receipt of the funding to pay that loan;

• Holders of general unsecured claims will receive no distribution unless there are any general unsecured claim litigation proceeds;

• Holders of subordinated claims are not expected to receive any distribution unless a cash surplus remains after all allowed claims have been paid; and

• Holders of equity interests will receive no distribution.

OCZ, a Sunnyvale, Calif.-based producer of computer memory and components, filed for bankruptcy on Dec. 2. The Chapter 11 case number is 13-13126.

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