Silver Creek Industries receives confirmation of Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Dec. 15 – Silver Creek Industries LLC received confirmation of its third amended Chapter 11 plan, according to a minute entry filed Friday with the U.S. Bankruptcy Court for the Central District of California.

As previously reported, the debtors sold most of their assets to Silver Creek Modular. After the sale closed, the debtors ceased business operations.

The plan distributes to creditors proceeds of the sale and cash that has been or may be received from the liquidation or other disposition of the debtors’ other assets, including by the assertion of causes of action.

On the effective date of the plan, all assets of the debtors will be transferred to a liquidating trust for the benefit of creditors.

Under the plan, holders of secured claims and priority non-tax claims will receive a distribution in the full amount of their claims.

Holders of general unsecured claims, including any allowed deficiency claim of CIT, will receive pro rata distributions from the liquidation trust.

Holders of subordinated claims will receive pro rata distributions from the trust if general unsecured claims are paid in full.

The general unsecured and subordinated claims won’t bear post-petition interest unless all higher priority claims and expenses are paid in full.

Interests will be canceled with no distribution.

Silver Creek Industries is a modular construction company based in Perris, Calif. The company filed Chapter 11 bankruptcy on April 24, 2023 under case number 23-11677.

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