Emergent Capital statement approved; plan hearing set for Dec. 21

By Sarah Lizee

Olympia, Wash., Nov. 13 – Emergent Capital, Inc.’s disclosure statement for its Chapter 11 plan of reorganization was approved Friday by the U.S. Bankruptcy Court for the District of Delaware, according to an order.

A hearing on confirmation of the plan is scheduled for Dec. 21.

As previously reported, the company entered into restructuring support agreements with a majority of holders of its 8˝% senior secured notes due 2021 and 5% senior unsecured convertible notes due 2023.

Emergent said the restructuring process will result in the company moving its headquarters and operations to its indirect wholly owned Irish subsidiary, Lamington Road DAC.

The contemplated restructuring process will provide that holders of the 8˝% senior secured notes, the 5% convertible notes and Emergent’s common stock and common stock equivalents will receive securities of Lamington and a to-be-formed Cayman grantor trust that are substantially similar to their current Emergent securities in exchange for said securities.

Subsequent to the restructuring, Emergent will wind up its remaining affairs.

As previously reported, holders of other priority claims will be paid in full in cash or receive other treatment that leaves their claims unimpaired under the plan.

Holders of other secured debt claims will receive payment in full in cash or the collateral securing their claims, or have their claims reinstated.

Holders of senior secured note claims will receive their pro rata share of the new notes and convertibles, respectively.

Holders of general unsecured claims will receive payment in full in cash or other treatment that leaves their claims unimpaired.

Equity interests will be canceled, and holders will receive their pro rata share of grantor trust certificates.

Emergent is a Boca Raton, Fla.-based specialty finance company that invests in life settlements. The company filed Chapter 11 bankruptcy on Oct. 15 under case number 20-12602.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.