Berkline/BenchCraft's plan of liquidation effective date is Dec. 21

By Lisa Kerner

Charlotte, N.C., Dec. 21 - Berkline/BenchCraft Holdings, LLC's second amended plan of liquidation became effective Dec. 21, according to documents filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Nov. 15.

As previously reported under the confirmed plan, treatment of creditors includes:

• Holders of administrative expense claims and priority tax claims will be paid in full in cash by the liquidating trust;

• Holders of Sun Capital Partners, Inc. secured claims receive 10% of the net distributable proceeds of the avoidance actions after the plan effective date and 92.5% of the net distributable proceeds from all other assets, after the payment of administrative claims, priority tax claims, professional fees, other secured claims, the Worker Adjustment and Retraining Notification Act class settlement fund and the effective date unsecured claim deposit;

• Holders of other secured claims and other priority claims will be paid the amount of their allowed claim in full from cash on hand from the liquidation of the estates' assets on the later of the date on which the claim is allowed, the plan effective date or the date on which the claim becomes due under the terms of the agreement upon which the claim is based;

• The WARN class action is resolved through the allowing of claims in favor of members of the WARN settlement class in the amount of $1.36 million, of which $448,333 will be paid to the WARN class attorneys;

• Holders of general unsecured claims receive a share of distributions from the general unsecured claim fund, which will consist of the effective date general unsecured claim deposit, 90% of the net distributable proceeds of all avoidance actions and 7.5% of the net distributable proceeds from all other assets that are recovered by the plan administrator after the effective date;

• Holders of Sun Capital Partners unsecured claims receive no distribution under the plan; and

• All equity interests will be canceled, with no distribution to equity holders.

Berkline/BenchCraft is a Morristown, Tenn.-based designer and manufacturer of residential upholstered furniture. The company filed for bankruptcy on May 2, 2011 under Its Chapter 11 case number 11-11369.

© 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.