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RCS Capital Amended Disclosure Statement Filed

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RCS Capital filed with the U.S. Bankruptcy Court an Amended Disclosure Statement with Respect to Joint Plan of Reorganization. According to the amended disclosure statement, “The Debtors estimate that there will be up to approximately $2 million of Allowed Priority Claims. The Second Lien Claims will be allowed in the aggregate amount of $153.2 million, with $50 million of such Allowed Claims to be treated as Secured Second Lien Claims and $103.2 million to be treated as Second Lien Deficiency Claims. On the Effective Date (i) in exchange for and in full satisfaction, settlement, release, and discharge of its Pro Rata share of the aggregate Allowed Secured Second Lien Claims, each holder of an Allowed Second Lien Claim shall receive its Pro Rata Share of 38.75% of the Reorganized Holdings Equity Interests, and (ii) in exchange for and in full satisfaction, settlement, release, and discharge of its Pro Rata share of the aggregate Allowed Second Lien Deficiency Claims, each holder of an Allowed Second Lien Claim will receive its Pro Rata share of Class B Units, entitling the holders thereof to receive a share of the distributions of the Litigation Asset Proceeds allocated to the holders of Class B Units pursuant to the Creditor Trust Distribution Schedule.” Read more investment industry bankruptcy news.