Boxed’s Chapter 11 plan of liquidation effective as of Sept. 1

By Sarah Lizee

Olympia, Wash., Sept. 6 – Boxed, Inc., formerly known as Seven Oaks Acquisition Corp., had its Chapter 11 plan go 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. 24, as previously reported.

The plan provides for the liquidation of the debtors’ remaining assets after closing the sale of its assets, the wind-down of the debtors’ remaining affairs, and the establishment of a liquidation trust to pursue recoveries on certain assets.

Under the plan, secured tax claims and other priority claims are unimpaired.

Holders of prepetition first-lien secured lender claims will receive non-liquidation trust assets after funding of the final cash collateral budget and the liquidation trust funding payment. Prior to any other liquidation trust distribution proceeds are made, holders will also receive liquidation trust distribution proceeds in the amount of the $750,000 liquidation trust funding payment. They will also receive a beneficial interest in the liquidation trust.

If prepetition first-lien lender secured claims have been paid in full, each holder of a prepetition second-lien secured lender claim will receive any remaining non-liquidation trust assets and, in satisfaction of deficiency claims, if any, a beneficial interest in the liquidation trust.

Holders of other secured claims will receive the return of the collateral securing their claims, cash equal to the amount of their claims or other treatment agreed to between holders and the debtors or liquidation trustee.

Holders of unsecured claims will receive beneficial interests in the liquidation trust.

Intercompany claims and intercompany interests will be reinstated, or canceled, released and extinguished with no distribution.

Interests and section 510(b) claims will be canceled with no distribution.

Boxed is a New York-based e-commerce technology company that provides bulk pantry consumables to business and household customers. The company filed bankruptcy on April 2 under Chapter 11 case number 23-10397.

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