Former Energy Alloys plan of liquidation effective as of July 8

By Sarah Lizee

Olympia, Wash., July 9 – MEA RemainCo Holdings, LLC, formerly Energy Alloys Holdings, LLC, had its Chapter 11 plan of liquidation go into effect on Thursday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on June 28.

As previously reported, the company filed a plan support agreement term sheet with the official committee of unsecured creditors, the Wingfoot/second-lien required lenders, Blackstone/GSO Capital Solutions Fund LP and GSO CSOMF Energy Alloys, Inc.

The term sheet contemplates the wind-down of the debtors and their estates under a combined plan and statement.

The plan provides for the liquidation and distribution of proceeds from the claims, causes of action and avoidance actions and other assets, net of any costs of liquidation or distribution, through a to-be-established liquidation trust, and the funding of those wind-down efforts.

Under the plan, all fee claims will be paid in full.

Holders of pre-petition secured lender claims will receive 75% of the debtors’ cash on hand as of the effective date; net proceeds from the sale of any of the debtors’ property on which the pre-petition secured lender has a valid lien; the remaining claims reserve; and the remaining fee escrow amount. They will also receive 100% of the recoveries from causes of action against the pre-petition secured lender and related parties; against the debtors’ present or former employees with respect to wage and severance payments; related to the severance and retention bonuses paid to Kevin Burnett, Doris Stuart and Neil Thomas, and related to board of director fees.

Holders of general unsecured claims will receive their pro rata share of the interests in the liquidation trust, as those distributions become available.

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

Houston-based Energy Alloys provides oilfield metals, services and supply chain solutions to global oil and gas manufacturers and service companies in the energy industry. The company filed Chapter 11 on Sept. 9, 2020 under case number 20-12088.

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