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Mississippi Phosphates first amended joint Chapter 11 plan confirmed
By Caroline Salls
Pittsburgh, Oct. 24 – Mississippi Phosphates Corp.’s first amended Chapter 11 plan was confirmed Monday by the U.S. Bankruptcy Court for the Southern District of Mississippi.
As previously reported, the plan was filed in conjunction with the official committee of unsecured creditors appointed for the case.
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 of 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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