Former Vertellus Specialties submits liquidation plan and disclosure

By Caroline Salls

Pittsburgh, Nov. 14 – VSI Liquidating Inc., formerly Vertellus Specialties, Inc., filed a plan of liquidation and related disclosure statement Friday in the U.S. Bankruptcy Court for the District of Delaware.

Under the plan, holders of administrative claims, priority tax claims and other priority claims will be paid in full in cash.

Debtor-in-possession facility claims are deemed satisfied in connection with the company’s sale agreement.

Holders of senior secured term loan claims will receive any remaining assets after payment of specified other claims and funding of reserves, including any cash and the proceeds of the liquidation of assets obtained by the company.

Holders of other secured claims will receive cash or the collateral securing the claim.

Holders of environmental unsecured claims will receive beneficial interests in an environmental response trust.

Holders of general unsecured claims will receive a share of “GUC cash,” liquidating trust interests and a committee value claim. The liquidating trust cash will include $1 million being held by the company for the benefit of these creditors and 50% of any excess amounts remaining in a wind-down budget on the plan effective date.

Holders of intercompany claims and equity interests will receive no distribution.

Vertellus is an Indianapolis-based provider of specialty chemicals for the agriculture, nutrition, pharmaceutical and medical, personal care, plastics, coatings and industrial markets. The company filed for bankruptcy on May 31 under Chapter 11 case number 16-11290.

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