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Violin Memory second amended plan of reorganization effective Friday
By Susanna Moon
Chicago, April 24 – Violin Memory, Inc.’s second amended plan of reorganization took effect on April 21, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.
For professional compensation, applications must be submitted for allowance of final compensation and reimbursement of expenses for the period through the effective date no later than May 22.
As previously reported, Violin’s the plan was confirmed by the court on April 18.
Under the plan, all allowed administrative, priority and secured claims will be paid in full.
Existing equity interests will be canceled, and equity in the reorganized company will be issued to Quantum Partners LP or its assignee.
Distributions for holders of allowed general unsecured claims will be funded solely by a liquidating trust from specified assets.
As previously reported, Quantum Partners LP affiliate VM Bidco LLC will sponsor the plan. Investment fund Quantum Partners holds $25.65 million of Violin’s outstanding convertible notes and is managed by Soros Fund Management LLC.
Under the sponsorship agreement, VM Bidco will provide $15 million in cash for recoveries to Violin Memory’s creditors under a plan in which Quantum Partners will receive all equity interests in the reorganized company in lieu of cash for its claims.
VM Bidco also agreed to provide Violin Memory with $8 million in debtor-in-possession financing, which will be converted into exit financing.
The plan sponsor will also assume some employee claims and counterparty obligations.
Santa Clara, Calif.-based Violin Memory develops and supplies computer data storage products. The company filed bankruptcy on Dec. 14 under Chapter 11 case number 16-12782.
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