Klausner Lumber Two details voting results on Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Feb. 24 – Klausner Lumber Two, LLC disclosed the voting results for the Chapter 11 plan filed by the company and the official committee of unsecured creditors in a tabulation summary filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The one holder of the $540,000 WARN Act class settlement claim and all 20 holders of $33.93 million of general unsecured claims voted to accept the plan.

Though other classes were eligible to vote on the plan, no ballots were received from the CS deficiency/unsecured claim class and Klausner Group unsecured claims class, and there were no claims in the subordinated claims class.

The plan confirmation hearing is scheduled for March 8.

The plan seeks to effectuate an orderly liquidation and distribution of assets and to resolve certain claims, including the Carolina Sawmills proceeding.

The plan calls for appointment of a liquidating trustee who will, among other things, effectuate the distribution of the proceeds of the sale of the debtor’s assets and close the case.

According to the disclosure statement filed with the plan, holders of CS secured claims will receive cash equal to the amount of their claims, the property that serves as security for those claims, or other treatment leaving their claims unimpaired.

Holders of administrative expense claims, professional fee claim, priority tax claims and priority claims are unimpaired.

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 CS deficiency/unsecured claims, general unsecured claims and Klausner Group unsecured claims will receive their pro rata share of an amount equal to the net distribution proceeds.

Holders of subordinated claims will receive the pro rata share of an amount equal to the net distribution proceeds remaining after satisfaction in full of all claims senior to these.

Interests will be canceled with no distribution to holders.

Klausner Lumber Two is an Enfield, N.C., sawmill and lumber company. The company filed bankruptcy on June 10, 2020 under Chapter 11 case number 20-11518.

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