Color Spot Nurseries – Further Amends Combined Plan & Disclosure Statement

Register, or to view the article

October 9, 2018 – Color Spot Nurseries filed a further amended Combined Plan of Liquidation & Disclosure Statement [Docket Nos. 410 and 411]. The Court documents explain, “Because the Plan is a liquidating plan, the ‘liquidation value’ in the hypothetical chapter 7 liquidation analysis for purposes of the ‘best interests’ test is substantially similar to the estimates of the results of the chapter 11 liquidation contemplated by the Plan. However, the Debtors believe that in a chapter 7 liquidation, there would be additional costs and expenses that the Estates would incur as a result of liquidating the Estates in a chapter 7 case. As noted herein, Wells Fargo has a security interest in or lien on the Retained Assets, and would be entitled to the proceeds of the Retained Assets upon liquidation. Therefore, no other creditors would be entitled to a distribution in a Chapter 7 proceeding.”
The following is a summary of classes, claims, voting rights and projected recoveries: 

  • Class 1 (“Priority Non-Tax Claims”) is unimpaired, deemed to accept and not entitled to vote. The projected amount of claims is less than $750,000 and projected recovery is 100%.
  • Class 2 (“Other Secured Claims”) unimpaired, deemed to accept and not entitled to vote. The projected amount of claims is $0 and projected recovery is 100%. 
  • Class 3 (“Wells Claims”) is impaired and entitled to vote. The projected amount of claims is $13,459,494.40 and projected recovery is 5%.
  • Class 4 (“General Unsecured Claims”) is impaired, deemed to reject the Plan and not entitled to vote. The projected amount of claims is $225,370,248 and projected recovery is 0%.
  • Class 5 (“Intercompany Claims”)  is impaired, deemed to reject the Plan and not entitled to vote. The projected amount of claims is $0 and projected recovery is 0%.
  • Class 6 (“Interests”) is impaired, deemed to reject the Plan and not entitled to vote. The projected amount of claims is N/A and projected recovery is 0%.
The Court scheduled a confirmation hearing of the plan on November 14, 2018, with objections to be filed on or before November 8, 2018.

Read more Bankruptcy News