CalPlant’s Chapter 11 plan of liquidation effective as of Sept. 29

By Sarah Lizee

Olympia, Wash., Sept. 29 – CalPlant I Holdco, LLC’s Chapter 11 plan of liquidation went into effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Aug. 15, as previously reported.

Under the plan, all of the debtors’ assets and the proceeds of their $16.41 million of 15% exit facility bonds due 2025 will vest in a liquidating trust.

Net proceeds from liquidation of the assets, including proceeds from retained causes of action, will be used by a liquidating director to satisfy the costs and expenses of the liquidating director, to repay the exit facility bonds, and to make distributions to holders of allowed claims.

Each holder of last in, first out debtor-in-possession claims will receive an instrument that will entitle them to receive their pro rata share of net proceeds until the claim is paid in full. The amount will include interests accrued post-effective date at the default rate. Distributions on account of this class will be subject to repayment in full of the exit facility bonds.

Each holder of a legacy DIP claim will receive an instrument that will entitle them to their pro rata share of the net proceeds until the claim is paid in full. The amount will include interest accrued post-effective date at the default rate. Distributions on account of this class will be subject to payment in full of the exit facility bonds and the allowed LIFO DIP claims.

Holders of other secured claims will receive cash equal to the amount of their claims, reinstatement of their claims, or property securing their claims, with any deficiency to result in an allowed general unsecured claim.

Each holder of a senior bond claim will receive an instrument that will entitle them to receive their pro rata share of the net proceeds until the claim is paid in full. Distributions on account of this class will be subject to repayment in full of the exit facility bonds, the allowed LIFO DIP claims and the allowed legacy DIP claims.

Subordinated claims, general unsecured claims, section 510(b) claims, intercompany claims and parent equity interests will be eliminated with no payment.

No distributions will be made for intercompany interests.

Willows, Calif.-based CalPlant manufactures sustainably sourced building products. The company filed Chapter 11 bankruptcy on Oct. 5, 2021 under case number 21-11302.

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