TerraVia Holdings announces liquidation plan effective as of Jan. 26

By Caroline Salls

Pittsburgh, Jan. 30 – TerraVia Holdings, Inc.’s plan of liquidation took effect on Jan. 26, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Jan. 8.

As previously reported, the plan calls for the liquidation and dissolution of the TerraVia debtors and the resolution of all outstanding claims and interests.

Priority claims and facility claims will be paid in full in cash.

Holders of “other” secured claims will be paid in full in cash, have the claims reinstated, receive the proceeds from the sale of the collateral securing the claims or receive the collateral.

Convenience claims will be paid in full in cash, provided, however, that if the amount of these claims exceeds the amount in the claim pool, creditors will receive a share of the claim pool.

Holders of general unsecured claims will receive a share of remaining asset sale proceeds following payment of senior claims and funding of the convenience claims pool.

Existing equity interests and section 510(b) claims will be cancelled and extinguished without any distribution.

Interests in subsidiary debtors will either be reinstated or cancelled and released without distribution.

TerraVia, previously known as Solazyme, Inc., is a South San Francisco, Calif.-based maker of plant-based food, nutrition and specialty ingredients using algae. The company filed for bankruptcy on Aug. 2, 2017 under Chapter 11 case number 17-11655.

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