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GreenTech Auto files Chapter 11 plan; Golden Resources to invest
By Caroline Salls
Pittsburgh, July 5 – GreenTech Automotive, Inc. filed a plan of liquidation and related disclosure statement on Tuesday with the U.S. Bankruptcy Court for the Eastern District of Virginia.
The company said the plan calls for the distribution of the GreenTech debtors’ remaining assts and the dissolution of the debtors.
Under the plan, the company will transfer some of its assets to a newly organized subsidiary of GreenTech, whose sole manager will be Shenzen Jin Hong Investment Management Co., Ltd., also known as Golden Resources.
Golden Resources will pay $5 million in cash for the GreenTech assets.
A plan administrator will be appointed to oversee a $50,000 administration fund and prosecute all outstanding litigation.
In exchange for its secured tax claim, Tunica County will receive a five-year 2% promissory note. In addition, 15% of a Tunica County secured claims will be paid in full in cash. The county will also receive a 15-year 6% promissory note in the amount of 80% of its secured claim.
A-3 LP will receive cash equal to 20% of its claim and a 15-year 6% promissory note equal to 80% of the claim.
The State of Mississippi will receive a 10% six-year unsecured promissory note in exchange for its secured claim. The note will allow for a 20% discount upon prepayment.
Holders of unsecured claims will receive share consideration equal to 105% of their claims.
Holders of subordinated unsecured claims will receive share consideration equal to 100% of their claims.
Holders of intercompany claims and interests will receive no distribution.
GreenTech is a Sterling, Va.-based electric vehicle manufacturer. The company filed for bankruptcy on Feb. 26 under Chapter 11 case number 18-10651.
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