WMC Mortgage amended liquidation plan deemed effective as of Nov. 12

By Caroline Salls

Pittsburgh, Dec. 13 – WMC Mortgage, LLC’s amended plan of liquidation took effect on Thursday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Nov. 5.

WMC said when it filed bankruptcy that it would fund plan distributions with the proceeds from a General Electric Co. settlement.

Under the plan, secured claims will be paid in full in cash or treated in another agreed manner.

Other priority claims will be paid in full in cash.

Holders of general unsecured claims will receive a share of a cash distribution.

Holders of intercompany claims will receive no distribution.

Existing equity interests will be cancelled, and holders will receive no distribution.

The company said in October that it entered into a stipulation that fixes the allowed amounts of claims filed by its five most significant general unsecured creditors, including HSBC, RBS, Barclays, Morgan Stanley and Wells Fargo Bank, NA.

Under the stipulation, the HSBC claim will be allowed in the amount of $17.15 million. HSBC will receive a plan distribution of $7.62 million within two business days of the effective date and its share of any subsequent distributions made to class four beneficiaries under the plan.

The RBS claim will be allowed in the amount of $10.49 million. RBS will receive a plan distribution of $7.67 million within two business days of the effective date and its share of any subsequent distributions made to class four beneficiaries under the plan.

The Barclays claim will be allowed in the amount of $17.85 million. Barclays will receive a plan distribution of $7.94 million within two business days of the effective date and its share of any subsequent distributions made to class four beneficiaries under the plan.

The Morgan Stanley claim will be allowed in the amount of $27.42 million. Morgan Stanley will receive a plan distribution of $12.19 million within two business days of the effective date and its share of any subsequent distributions made to class four beneficiaries under the plan.

The Wells Fargo claim will be allowed in an unliquidated amount. Wells Fargo will receive a plan distribution of $1.53 million within two business days of the effective date and its share of any subsequent distributions made to class four beneficiaries under the plan.

WMC is a Woodland Hills, Calif.-based mortgage originator. The company filed bankruptcy on April 23, 2019 under Chapter 11 case number 19-10879.

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