Klausner Lumber One receives court confirmation of Chapter 11 plan

By Sarah Lizee

Olympia, Wash., July 1 – Klausner Lumber One, LLC secured confirmation of its Chapter 11 plan on Thursday, according to an order filed with 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, as previously reported.

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 will receive a distribution consisting of (i) on account of its allowed priority wage claim, the allowed priority wage claim less any and all state, federal and/or other payroll tax withholdings, and (ii) on account of any portion of the claim that constitutes a general unsecured claim, their pro rata share of an amount equal to the $7.2 million general unsecured distribution amount, less any and all state, federal and/or other payroll tax withholdings, and any amounts that the plan administrator determines to be necessary to be held to wind up the debtor’s affairs.

Holders of FS deficiency/unsecured claims will receive their pro rata share of $19 million of net distribution proceeds.

Holders of general unsecured claims will receive their pro rata share of $7.2 million of net distribution proceeds.

Holders of affiliate unsecured claims will receive their pro rata share of $3.8 million of net distribution proceeds, provided however that if the total amount of general unsecured claims is less than $7.2 million, then the portion of the general unsecured claims distribution that exceeds the total amount of general unsecured claims, the first up to $200,000 that would have otherwise been distributed to general unsecured claimholders will be added to the affiliated unsecured claims distribution amount, and any remaining amount would be split equally between the FS deficiency/unsecured claimholders and affiliate unsecured claimholders.

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.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.