Hooper Holmes – Files Joint Plan and Disclosure Statement, General Unsecured Creditors in Line for 3.5% Recovery

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December 14, 2018 – Hooper Holmes filed a Joint Plan of Liquidation [Docket No. 292] and Disclosure Statement [Docket No. 293].
The Disclosure Statement notes, “The Plan provides that a Liquidating Trust is to be created as of the Effective Date, or as soon as reasonably practical thereafter. All property of the Estates constituting the Liquidating Trust Assets are to be conveyed and transferred by the Debtors or Liquidating Debtor to the Liquidating Trust on the Effective Date, free and clear of all interests, Claims, Liens and encumbrances. The proceeds of the Liquidating Trust Assets will then be shared with Holders of Allowed Claims as set forth in the Plan and the Liquidating Trust Agreement, which will be filed as part of the Plan Supplement.
 
On or soon after the Effective Date, the Liquidating Trustee shall be elected to act in the stead of the Boards to ensure that the Liquidating Debtor winds-down its operations in the most effective and efficient manner and complies with its obligations and duties under the Plan. Once the Liquidating Debtor has completed the wind-down of its business, the Liquidating Trustee will dissolve the Liquidating Debtor under applicable non-bankruptcy law.”
 
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 on the Plan. Estimated recovery is 100%.
  • Class 2 (“Miscellaneous Secured Claims”) is unimpaired, deemed to accept and not entitled to vote on the Plan. Estimated recovery is 100%.
  • Class 3 (“SWK Secured Claims”) is impaired and entitled to vote on the Plan. Estimated recovery is 0%.
  • Class 4 (“SWK Deficiency Claims”) is impaired and entitled to vote on the Plan. Estimated recovery is 0%.
  • Class 5 (“General Unsecured Claims”) is impaired and entitled to vote on the Plan. Estimated recovery is 3.5%.
  • Class 6 (“Interests”) is impaired, deemed to reject and not entitled to vote on the Plan. Estimated recovery is 0%.
  • Class 7A (“Subordinated Century Claims”) is impaired, deemed to reject and not entitled to vote on the Plan. Estimated recovery is 0%.
  • Class 7B (“Other Subordinated Claims”) is impaired, deemed to reject and not entitled to vote on the Plan. Estimated recovery is 0%.
 
The following exhibits are filed with the Disclosure Statement:
 
  • Exhibit A: Proposed Joint Plan of Liquidation
  • Exhibit B: List of Preserved Causes of Action

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