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Signal International submits plan of liquidation based on asset sale
By Caroline Salls
Pittsburgh, Sept. 4 – Signal International, Inc. filed its plan of liquidation and related disclosure statement Sept. 3 with the U.S. Bankruptcy Court for the Southern District of New York.
Signal said the key features of the plan are the sale of substantially all of its assets and the establishment of a litigation settlement trust and a liquidating trust.
Treatment of creditors will include the following:
• Priority claims will be paid in full in cash from a disputed claims reserve;
• Holders of first-lien loan agreement claims will either acquire the company’s assets or be paid in full in cash from sale proceeds;
• Holders of other secured claims will either be paid in full in cash from the disputed claims reserve or receive the collateral securing the claims;
• Holders of litigation claims will receive a share of litigation settlement trust assets;
• Holders of general unsecured claims will receive a share of a general unsecured claim payment amount, which will be equal to the lesser of $900,000 and 15% of the total amount of allowed general unsecured claims, as well as a share of an excess sale overpayment; and
• Holders of equity interests and intercompany claims will receive no distribution.
The disclosure statement hearing is scheduled for Oct. 8.
Signal International, a Mobile, Ala.-based marine construction firm, filed for bankruptcy on July 12. The Chapter 11 case number is 15-11498.
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