Former Gulf Chemical amended plan of liquidation effective Sept. 8

By Caroline Salls

Pittsburgh, Sept. 8 – GCM Liquidation Corp.’s amended plan of liquidation took effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

GCM was formerly Gulf Chemical & Metallurgical Corp.

The plan was confirmed on Aug. 30.

Under the plan, claims related to the debtor-in-possession facility provided by Comilog will be paid in full, with 80% of the distribution to be made directly to Comilog and, in accordance with a settlement agreement, the remaining 20% to be deposited into a creditor recovery pool.

In connection with claims arising out of Comilog pre-bankruptcy secured loans, until there are enough funds in the creditor recovery pool to pay general unsecured claims in full, Comilog will receive 75% of the claim amount, and the remaining 25% will go into the recovery pool. Otherwise, Comilog will receive 100% of the distributions for the secured claims.

In addition, to the extent there are any assets available after these other payments, Comilog will be reimbursed for its secured claim contribution.

Holders of other secured claims will receive either the net proceeds from the sale of the property securing the claim, the return of that property or cash equal to the value of the property.

Administrative claims and other priority claims will be paid in full in cash.

Holders of general unsecured claims will receive a share of the remaining creditor recovery pool funds after the payment of priority claims and expenses.

Holders of subordinated claims will receive a share of the remaining creditor recovery pool funds after the payment of all general unsecured claims. Holders of “super-subordinated” claims will receive a share of the remaining creditor recovery pool funds after the payment of all subordinated claims.

All interests in GCM will be deemed canceled and null and void.

Priority tax claims and professional fee claims will be paid in full in cash.

Gulf Chemical is a Freeport, Texas-based subsidiary of Eramet, a Paris-based mining and metallurgical global producer of alloying metals. Gulf Chemical filed bankruptcy on June 14, 2016 under Chapter 11 case number 16-22192.

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