Klausner Lumber One, committee file plan; statement hearing April 15

By Sarah Lizee

Olympia, Wash., March 9 – Klausner Lumber One, LLC and its official committee of unsecured creditors filed a Chapter 11 plan and related disclosure statement Monday in the U.S. Bankruptcy Court for the District of Delaware.

A liquidating trust will fund distributions under the plan with all cash of the debtor available on the effective date, after funding a professional fee escrow account.

Under the plan, administrative claims, professional fee claims and priority tax claims will be paid in full.

Holders of Florida Sawmills secured claims, affiliate secured claims and other secured claims will receive cash equal to their claims, the property that serves as security for their claims or other treatment that will render holders unimpaired.

Holders of priority claims will receive payment in full in cash or treatment consistent with section 1129(a) of the Bankruptcy Code.

Holders of WARN Act class settlement claims will receive their pro rata share of the net WARN Act class settlement amount less any and all state, federal and/or other payroll tax withholdings.

Holders of non-WARN Act class settlement claims, FS deficiency/unsecured claims, general unsecured claims, affiliate unsecured claims will receive their pro rata share of the net distribution proceeds, less any amounts that the liquidation trustee determines to be necessary to wind up the debtors’ affairs.

Holders of subordinated claims will receive their pro rata share of the net distribution proceeds remaining after the satisfaction in full of all senior claims.

Interests will be canceled with no distribution.

A hearing on approval of the disclosure statement is scheduled for April 15.

Klausner is a Live Oak, Fla.-based lumber company. The company filed bankruptcy on April 30, 2020 under Chapter 11 case number 20-11033.

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