Gulf Chemical debtor BMC Liquidation files Chapter 11 plan, disclosure

By Caroline Salls

Pittsburgh, Oct. 27 – Gulf Chemical & Metallurgical Corp. debtor BMC Liquidation Co., formerly Bear Metallurgical Co., filed its plan of liquidation and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

Under the plan, some cash generated during the Bear Chapter 11 case and the liquidation of any remaining assets will be distributed to creditors and interest holders by a plan administrator.

The plan provides for the payment in full of the face amount of all allowed claims, including administrative, priority tax, other priority, debtor-in-possession financing, secured and general unsecured claims.

All remaining cash will be distributed to Gulf, the sole holder of equity interests in Bear.

On the plan effective date, an administrative claims reserve and a disputed claims reserve will be established.

After distributions have been made to holders of allowed claims and the reserves have been established and funded, all remaining cash will be distributed to Gulf.

In accordance with a settlement agreement, to the extent Gulf owes Comilog any amounts on DIP loans, the plan administrator will pay 80% of any distributions made on account of the allowed interests directly to Comilog and deposit the remaining 20% into a trust account to be established jointly by Gulf and its official committee of unsecured creditors for a creditor recovery pool.

If the amount available for distributions to Gulf exceeds the amount owed by Gulf to Comilog, the plan administrator will pay 100% of the remaining distributions directly to Gulf.

Gulf is a Freeport, Texas-based subsidiary of Eramet, a Paris-based mining and metallurgical global producer of alloying metals. Gulf filed bankruptcy on June 14 under Chapter 11 case number 16-22192.

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