Former Katy Industries’ plan of liquidation effective as of Nov. 29

By Caroline Salls

Pittsburgh, Nov. 30 – The second amended plan of liquidation filed by KII Liquidating Inc., formerly Katy Industries, Inc., took effect on Thursday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The company said the plan, which was confirmed on May 2, 2018, calls for the appointment of a plan administrator, which will make distributions to holders of allowed claims. Emerald Capital Advisors was approved as plan administrator.

KII said the remaining assets of its estates consisted primarily of adversary proceeding claims, causes of action that were not sold, any unused letter-of-credit proceeds, reimbursable expenses, $600,000 in cash that was previously set aside, but not used, for the payment of administrative claims and a $100,000 new stock payment.

To the extent not already paid or assumed by the company’s asset purchaser, administrative claims, secured tax claims and other priority claims will be paid in full in cash.

Priority tax claims that have not been already paid or assumed will be paid in full over a five-year period.

Holders of other secured claims will either be paid in full in cash, receive the collateral securing the claims or otherwise have their claims left unimpaired.

Holders of general unsecured claims will receive a share of net distributable assets.

Holders of Katy interests, intercompany claims, intercompany interests and subordinated claims will receive no distribution.

Katy, a St. Louis-based manufacturer, importer and distributor of commercial cleaning and consumer storage products, filed for bankruptcy on May 14, 2017. The Chapter 11 case number is 17-11101.

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