LB Steel and creditors committee propose joint plan of liquidation

By Caroline Salls

Pittsburgh, July 9 – LB Steel, LLC filed its plan of liquidation and related disclosure statement Monday with the U.S. Bankruptcy Court for the Northern District of Illinois.

The plan was proposed in conjunction with the official committee of unsecured creditors appointed for LB Steel’s case.

Under the plan, lawsuits will be prosecuted for the benefit of holders of allowed claims, with specified creditors to share in the proceeds from that litigation. LB Steel said the total recovery from prosecution of lawsuits is estimated to be roughly $3 million.

Holders of priority claims will be paid in full.

Holders of general unsecured claims will receive a share of net distributions from the litigation proceeds.

Interest holders will receive no distribution.

A hearing on approval of the disclosure statement is scheduled for Aug. 6.

LB Steel is a Harvey, Ill.-based producer of strip plate mills. The company filed bankruptcy on Oct. 18, 2015 under Chapter 11 case number 15-35358.

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