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Oakridge Holdings Bankruptcy Plan Filed

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Oakridge Holdings filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.

According to the Disclosure Statement, “The implementation of the Plan is dependent upon the confirmation of the plan of reorganization for Stinar and its continued operation. Stinar, after confirmation, will manage its affairs and all of its assets, and will disburse funds, serving as required as disbursing agent. Stinar will be responsible for operating its business, paying expenses and making distributions to creditors as set forth in both Stinar’s plan of reorganization and Oakridge’s Plan. Stinar will provide or pay out of operating funds for all of its administrative expenses and business debts in the ordinary course of business, according to the Plan.”

In addition, “The infusion of the additional capital in Stinar from Kruckeberg, the increase in Stinar’s sales force, the ultimate re-financing of the secured debt and the continued improvement of the operations of Stinar, the cost-savings achieved to date and an increasing presence in the marketplace all enhance the feasibility of Stinar’s plan of reorganization and Oakridge’s Plan and its likelihood of success. Oakridge believes strongly that acceptance of the Plan is in the best interest of its creditors. Based upon the financial projections discussed above, Oakridge believes it can offer more to unsecured claimants and quicker payments than under a liquidation scenario in which the Debtor’s assets will be first turned over to the secured creditors, and other priority claimants and then paid out to the unsecured creditors. If liquidation were to occur, unsecured creditors would receive approximately $0.00 on their claims.”

Read more Oakridge bankruptcy news.