Wireless Systems final disclosure statement hearing moved to Sept. 29

By Sarah Lizee

Olympia, Wash., Aug. 24 – Wireless Systems Solutions, LLC’s hearing for final approval of the disclosure statement for its Chapter 11 plan of reorganization has been moved to Sept. 29 from Sept. 19, according to court documents filed with the U.S. Bankruptcy Court for the Eastern District of North Carolina.

The company has received conditional approval of the disclosure statement. The plan confirmation hearing is still scheduled for Oct. 12.

As previously reported, the company said the plan will be funded both by ordinary business operations and through the investigation and pursuit of causes of action.

Under the plan, administrative expense claims will be satisfied in full.

Secured claims and priority claims will be paid in full with interest at the taxing authority’s statutory rate in quarterly installments, amortized so that the final payment is made within five years.

Non-tax priority claims will be paid in full with interest in quarterly installments, amortized over five years.

The holder of the Small Business Administration secured claim will be paid in full with simple interest of 6% with payments made as follows: $10,000 within six months from the effective date; $100,000 within 12 months, $100,000 within 18 months, $100,000 within 24 months, $120,000 within 30 months, $120,000 within 36 months; and $150,000 every six months thereafter until the claim has been paid in full.

The holder of the CIT Bank secured claim will be paid $30,000 over three years in $5,000 increments every six months.

For the SmartSky Networks, LLC claim, the debtor will pay an escrow agent $387,000 as follows: $9,000 within six months; $9,000 within 12 months; $18,000 within 18 months; $27,000 within 24 months; $36,000 within 30 months; $36,000 within 36 months; and $36,000 every six months thereafter until the agent has received the full $387,000.

Remaining unsecured claims will be paid $43,000 as follows: $1,000 within six months; $1,000 within 12 months; $2,000 within 18 months; $3,000 within 24 months; $4,000 within 30 months; $4,000 within 36 months; and $4,000 every six months until this class has been paid the full $43,000. In addition, this class will receive 60% of the net proceeds attributable to causes of action.

Equity interests will be retained.

In the event that any party with an allowed claim in a non-accepting impaired class objects to confirmation under the absolute priority rule, the debtor will schedule an auction of its equity within 30 days after the confirmation date. Any successful bidders at the auction will have the fiduciary duty to fulfill the terms of the plan, and will be personally liable to creditors if the payments called for by the plan are not made.

The Morrisville, N.C.-based cellular network solutions company filed Chapter 11 bankruptcy on March 9 under case number 22-00513.

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