Mississippi Phosphates, creditors committee file joint Chapter 11 plan

By Caroline Salls

Pittsburgh, April 29 – Mississippi Phosphates Corp. and its official committee of unsecured creditors filed a joint Chapter 11 plan and related disclosure statement Friday with the U.S. Bankruptcy Court for the Southern District of Mississippi.

As previously reported, Mississippi Phosphates was ordered to file a Chapter 11 plan and disclosure statement by April 29 as part of an agreed order filed April 13.

If the company did not file a plan by that date, its Chapter 11 bankruptcy case would have been converted to Chapter 7.

According to the disclosure statement, the plan is based on an environmental settlement and a committee settlement, which will provide the basis for funding of the plan and allow for negotiated distributions.

Holders of pre-bankruptcy secured lender claims will be paid in accordance with the distribution, allocation and priority scenarios set in the settlement agreements.

Debtor-in-possession lender claims will be paid outside the plan by a liquidation trustee on terms acceptable to the lenders and the trustee.

Landlord, lessor and utilities secured claims will be paid from the holders’ deposits or the proceeds of the sale of their collateral. Any deficiency between the claim amount and the value of the deposit or collateral will be treated as a general unsecured claim.

General unsecured claims will be paid only to the extent that there are any remaining funds in a disbursing account after the payment in full administrative expense claims.

Holders of specified subordinated claims will be paid only after holders of general unsecured claims have been paid in full.

Equity interests will be extinguished, and holders will receive no distribution under the plan.

Mississippi Phosphates, a Pascagoula, Miss., fertilizer company, filed for bankruptcy on Oct. 27, 2014. The Chapter 11 case number is 14-51667.

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