MatlinPatterson fund files amended Chapter 11 plan of liquidation

By Sarah Lizee

Olympia, Wash., April 20 – MatlinPatterson Global Opportunities Partners II LP filed an amended Chapter 11 plan of liquidation on Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The amended plan added class 6, consisting of VarigLog claims. The debtor recently reached a settlement with VarigLog.

Holders of VarigLog claims will receive the $13.5 million VarigLog settlement amount, to be paid in full in cash, with funds from the participating insurers escrow account.

Holders of other priority claims will receive payment in full in cash.

Holders of general unsecured claims and promissory note claims will receive, at the plan administrator’s discretion, payment in full in cash or other treatment leaving the claims unimpaired.

Holders of VRG claims will receive the $42 million VRG settlement amount, to be paid in full in cash.

Holders of HJDK Aeroespacial SA claims will receive the $8.5 million HJDK settlement amount, to be paid in full in cash, only with the funds from the Zurich escrow account.

Holders of partnership interests will have their interests canceled and will receive cash from a distributions reserve, after payment of other amounts.

Holders of affiliate equity interests will receive nothing under the plan.

Intercompany claims will be canceled with no distribution.

MatlinPatterson is a New York-based distressed debt and credit opportunities fund. The company filed bankruptcy on July 6, 2021 under Chapter 11 case number 21-11255.

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