Louisiana Pellets Chapter 11 plan of liquidation takes effect Oct. 13

By Caroline Salls

Pittsburgh, Oct. 16 – Louisiana Pellets, Inc.’s plan of liquidation took effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Western District of Louisiana.

The plan was confirmed on Sept. 8.

The plan provides for satisfaction and payment of any outstanding portion of the debtor-in-possession loan from sale proceeds.

Any remaining sale proceeds will be used to pay a bond trustee secured claim. The company will also use any remaining distribution reserve balance and a DIP loan escrow to satisfy the bond trustee claim.

Administrative claims, priority tax claims and professional fee claims will be paid from the distribution reserve.

A liquidating trust will be formed under the plan and will receive a bond trustee carve-out payment and any remaining sale proceeds after all other payments are made. The trust will also prosecute any retained causes of action and liquidate any other excluded assets on behalf of holders of unsecured claims and deficiency claims.

Equity interests will be cancelled, and interestholders will receive no distribution.

Based in Urania, La., Louisiana Pellets manufactures wood pellets. The company filed for bankruptcy on Feb. 18, 2016 under Chapter 11 case number 16-80162.

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