Volunteer Energy disclosure statement hearing set for March 28

By Sarah Lizee

Olympia, Wash., Feb. 2 – Volunteer Energy Services Inc.’s disclosure statement hearing is scheduled for March 28, according to a notice filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Ohio.

The deadline to object to the disclosure statement is scheduled for March 10.

As previously reported, the company recently filed an amended Chapter 11 plan of liquidation and related disclosure statement.

At a Jan. 10 hearing, the court expressed concerns with respect to the disclosure statement and directed the debtor to file an amended plan of liquidation and disclosure statement by Jan. 20 that addressed those concerns.

According to the amended plan, administrative expense claims, priority tax claims and other priority claims will be paid in full.

Holders of DIP financing claims will receive cash equal to the claims. All accrued interest and other expenses of the DIP secured parties will be paid in full.

Holders of other secured claims will receive cash equal to the claims, the return of the collateral securing the claims, or other treatment leaving the claims unimpaired.

Holders of prepetition ABL financing claims will receive cash in an amount equal to any and all prepetition ABL debt due under the prepetition ABL financing documents.

For the accrued fee claim, the prepetition ABL lender will receive the balance of the compromised accrued fee claim due, and the prepetition ABL lender agrees to waive the waived accrued fee claim.

However, if the case is converted or dismissed, the prepetition ABL lender will retain the accrued fee claim and its liens and claims to secure the entire amount of the accrued fee claim, plus accrued interest and expenses. The sharing arrangement under the DIP order will be reinstated, and applied cash collections and proceeds against the accrued fee claim in excess of $1.13 million will be held in escrow.

Holders of general unsecured claims will receive their pro rata share of general unsecured creditor interests as distributions become available after the payment of all DIP financing claims, allowed professional fee claims, administrative claims, other priority claims, other secured claims and prepetition ABL financing claims and the payment of all costs and expenses of the liquidating trust.

The liquidating trustee will make periodic distributions of available cash from the liquidating trust assets to the holders of general unsecured creditor interests at any time after the effective date.

Interests will be canceled with no distribution.

The liquidating trust will be funded with at least $500,000 initially.

The Pickerington, Ohio-based retail energy provider filed Chapter 11 bankruptcy on March 25, 2022 under case number 22-50804.

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