Big Village’s Chapter 11 liquidation plan effective as of Aug. 31

By Sarah Lizee

Olympia, Wash., Sept. 1 – Big Village Holding LLC’s Chapter 11 plan of liquidation went effective on Thursday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Aug. 24.

Under the plan, holders of prepetition loan secured claims will receive their pro rata share of the $14 million initial distribution amount, which was previously not disclosed, as well as a $4 million second distribution amount. Holders will also receive asset sale proceeds up to the full amount of the claims. The estimated amount of claims in this class is $49.29 million.

Priority non-tax claims and other secured claims are unimpaired by the plan.

Holders of general unsecured claims will receive their pro rata share of a cash allocation of $795,000, provided that Lake Capital claims and prepetition loan deficiency claims will not participate in the cash allocation. The estimated amount of claims in this class is $63.99 million. The estimated recovery for this class is 1% to 2%.

Holders of intercompany claims and interests will receive nothing under the plan.

Big Village received approval in early April to sell its assets to several purchasers following an auction process.

The company sold its agency and insights business to Bright Mountain Media, Inc. for $19.27 million, its managed services business to ZStream Acquisition, LLC for $2.1 million, plus 100% of the accounts receivable for the managed services business estimated at about $1.5 million to $1.6 million, its Balihoo business to Insticator, Inc. for $900,000, and its EMX Digital intellectual property assets to Cadent, LLC for $7.08 million.

The Chicago-based advertising, technology and data company filed Chapter 11 bankruptcy on Feb. 8, 2023 under case number 23-10174.

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