Former Vertellus Specialties’ amended plan of liquidation confirmed

By Caroline Salls

Pittsburgh, Feb. 24 – VSI Liquidating Inc., formerly Vertellus Specialties, Inc., secured confirmation of its modified first amended plan of liquidation, according to an order filed Friday with 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 either be paid in full in cash to the extent the collateral securing the claim has been converted to cash or will receive the collateral.

Holders of other secured claims will either be paid in full in cash or receive 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,” which will include $1 million in mediation recovery amounts 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, 2016 under Chapter 11 case number 16-11290.

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