Education Training gets confirmation of amended plan of liquidation

By Kali Hays

New York, March 18 – Education Training Corp. obtained confirmation of its amended plan of liquidation on Wednesday from the U.S. Bankruptcy Court for the District of Delaware, according to an order.

As previously reported, the disclosure statement related to the plan was approved at the end of January and the plan received unanimous support from voting creditors.

The amended plan alters the treatment of holders of other priority claims whereby those creditors will receive either a full cash payment of an allowed claim on the later of the effective date and the claim allowance date or be given such other treatment that is agreed upon between the claimant and the liquidating trustee.

Under the previous plan, holders of other priority claims were to receive a share of any liquidating trust assets remaining for distribution after payment of administrative claims and distributions to holders of lender claims.

The plan incorporates a settlement with its lender agent and asset purchaser IEC Corp. under which IEC will fund $100,000 to a liquidating trust, acquire any and all potential preference actions against non-insiders and agree to not prosecute those actions.

Other terms of the plan remain unchanged and treatment of creditors will include the following:

• Administrative claims will be paid in full in cash;

• Holders of priority tax claims will receive a share of any liquidating trust assets remaining for distribution after payment of administrative claims;

• Holders of lender secured claims and first-out lender secured claims will receive a share of all restricted cash remaining in the Education Training debtors’ bank accounts on the plan effective date and a first-priority lien on and secured claim against liquidating trust assets that are pre-bankruptcy collateral or collateral proceeds;

• Holders of other secured claims will receive the right, title or interest to assets securing the claims;

• Holders of general unsecured claims will receive a share of any remaining liquidating trust assets after payment of secured claims, administrative claims, priority tax claims, other priority claims and professional fee claims; and

• Equity interests will be canceled, released and extinguished.

Education Training, a Lauderdale Lakes, Fla.-based operator of private, for-profit schools, filed for bankruptcy on Aug. 25, 2014. The Chapter 11 case number is 14-11987.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.