Strike files plan of liquidation, seeks May 17 combined hearing

By Sarah Lizee

Olympia, Wash., March 24 – Strike, LLC filed a Chapter 11 plan of liquidation and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company sold its assets to Strike Acquisition LLC, an affiliate of American Industrial Partners (AIP), as previously reported.

The plan provides for the satisfaction in full of all senior claims, including administrative claims, priority tax claims, priority non-tax claims and secured claims.

Holders of general unsecured claims will receive interests in a liquidating trust that will administer and liquidate all remaining property of the debtors. Non-AIP parties are expected to receive a recovery of 1.2% to 2.7%, plus distributions, if any, from the liquidating trust proceeds.

Among other things, the liquidating trust is expected to prosecute certain causes of action of the debtors not sold, assigned or otherwise released on or before the effective date of the plan, including litigation claims against the debtors’ former officers and directors.

Intercompany claims will be either reinstated or adjusted, set off, released or otherwise addressed with no distribution.

All intercompany interests other than those in the wind-down debtors will be canceled with no distribution. The intercompany interests in the wind-down debtors will be reinstated for administrative purposes only, provided that the interests in Strike, LLC will be transferred to the liquidating trust.

Holders of STH ShellCo interests will receive no distribution.

Section 510(b) claims will be canceled.

The company and official committee of unsecured creditors believe the recoveries will be greater under the liquidating plan than under a Chapter 7 liquidation.

Under the plan, AIP waived its right to receive a recovery on account of its roughly $175 million general unsecured claim until after the total recovery to all other general unsecured claims exceeds 7.5%.

There would also likely be additional costs incurred in replacing the existing management and professionals in a Chapter 7 case.

The company is seeking a combined hearing on approval of the disclosure statement and confirmation of the plan on May 17.

Strike is based in The Woodlands, Tex., and is a full-service pipeline, facilities and energy infrastructure solutions provider. The company filed Chapter 11 bankruptcy on Dec. 6 under case number 21-90054.

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