Former Borden Dairy Chapter 11 plan of liquidation effective Jan. 7

By Sarah Lizee

Olympia, Wash., Jan. 8 – BDC Inc.’s, formerly Borden Dairy Co., Chapter 11 plan of liquidation went 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 Dec. 15, as previously reported.

The plan calls for assets retained by the company, to the extent not already liquidated, to be liquidated over time, with the proceeds distributed to creditors.

A wind-down administrator will complete the liquidation and make distributions, and the BDC debtors will be dissolved.

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

Priority claims will be paid in full in cash.

Holders of term loan B deficiency claims will receive a share of distribution proceeds following an initial distribution to holders of general unsecured claims.

Holders of general unsecured claims will receive the first $1 million in distribution proceeds and a share of distribution proceeds remaining after payment to holders of term loan B deficiency claims.

Holders of intercompany claims, intercompany interests and interests in the holding company will receive no distribution.

Borden is a Dallas-based dairy company. The company filed bankruptcy on Jan. 5, 2020 under Chapter 11 case number 20-10010.

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