SquareTwo Financial’s Modified Joint Prepackaged Chapter 11 Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on June 9, 2017.
As previously reported, “The Plan provides for the comprehensive settlement of Claims and controversies against the Debtors….Pursuant to Section 7.2 of the Plan, the Reorganized Debtors are authorized to sell to the Plan Investor one hundred (100%) of the Interests in (a) Reorganized CACH and Reorganized CACV of Colorado, and (b) to the Canadian Purchase Co from Collect America of Canada, 35,000 shares of stock of Reorganized SquareTwo Financial Canada Corporation, which represents one hundred (100%) of the issued and outstanding equity of Reorganized SquareTwo Financial Canada, as well as any other obligations to the Plan Investor under the Plan Funding Agreement and the Plan.”
In addition, “After the Effective Date, the Plan Investor shall return to Wind Down Co any cash or cash equivalents pledged to secure surety bonds, letters of credit and other deposits outstanding as of the Effective Date. Holders of Second Lien Lender Claims, U.S. General Unsecured Claims and Existing U.S. Interests shall not receive or retain any distribution under the Plan on account of such Claims and Interests.”
This accounts receivable accounts collector and manager filed for Chapter 11 protection on March 19, 2017, listing $308 million in pre-petition assets.
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