Suitable Technologies files Chapter 11 plan; statement hearing May 11

By Sarah Lizee

Olympia, Wash., April 5 – Suitable Technologies, Inc. filed a Chapter 11 plan of liquidation and related disclosure statement Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan provides for the appointment of a plan administrator, the cancellation of all interests in the debtor and the dissolution and wind-up of the debtor’s affairs.

The plan also provides for a settlement with debtor-in-possession lender Magicheart, under which the parties agreed to resolve any claims or disputes in exchange for Magicheart funding the wind-down budget, with the amount deemed to be an additional borrowing under the debtor-in-possession credit agreement and included in the DIP Claim. Magicheart will also fund the general unsecured claims distribution amount.

Magicheart will waive the right to any distribution under the plan on account of any and all claims held against the debtor and the estate, including the DIP claim, the pre-petition promissory notes claim, and the Palo Alto real property lease claims.

Administrative claims, professional fee claims, Asgaaard Capital fee claims, priority tax claims and priority claims will be paid in full.

Holders of secured claims will be paid in full in cash, have their claims reinstated or receive the collateral securing their claims.

Holders of general unsecured claims will receive their pro rata share of the $306,517 general unsecured claims distribution amount.

Holders of subordinated claims and interests will not receive or retain any property under the plan.

A hearing on approval of the disclosure statement is scheduled for May 11.

Suitable Technologies is a Palo Alto, Calif.-based internet services and infrastructure company. The company filed bankruptcy on Feb. 26, 2020 under Chapter 11 case number 20-10432.

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