GreenTech Automotive disclosure statement OK’d; plan hearing Dec. 21

By Caroline Salls

Pittsburgh, Nov. 26 – GreenTech Automotive, Inc. obtained court approval of the disclosure statement for its plan of liquidation, according to an order filed Monday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The plan confirmation hearing is scheduled for Dec. 21.

The company said the plan calls for the distribution of the GreenTech debtors’ remaining assets 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 $50 million in cash for the GreenTech assets.

An auction will be held on Dec. 18.

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 and secured claim, Tunica County will receive cash.

A-3 LP will receive cash in exchange for its claim.

Holders of unsecured claims will receive cash equal to 50% of their claims.

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

GreenTech is a Sterling, Va.-based electric vehicle manufacturer. The company filed for bankruptcy on Feb. 26, 2018 under Chapter 11 case number 18-10651.

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