News from BankruptcyData.com
Allen Systems Group Disclosure Statement Approved, Plan Confirmed
The U.S. Bankruptcy Court approved Allen Systems Group's Disclosure Statement and concurrently confirmed its First Amended Joint Prepackaged Chapter 11 Plan of Reorganization (with technical modifications). According to documents filed with the Court, "The Plan provides for the following: "(a) the issuance of the New Common Stock; (b) the consummation of the Rights Offering; (c) entry in to the Exit Facilities; and the (d) payment of Cash [and] (a) holders of Secured Tax Claims will be paid in full in cash; (b) holders of Other Secured Claims will be reinstated or receive collateral; (c) holders of Other Priority Claims." This software solutions' provider filed for Chapter 11 protection on February 18, 2015, listing more than $100 million in pre-petition assets.
Lehman Brothers Holdings Distribution Announced
Lehman Brothers Holdings, as plan administrator, announced the percentage recovery that will be distributed on April 2, 2015 to holders of allowed claims against the Company and its various affiliated Debtors. Lehman's Brothers Holdings' aggregate seventh distribution to unsecured creditors pursuant to its U.S. Bankruptcy Court-confirmed and effective Modified Third Amended Joint Plan will total approximately $7.6 billion. This distribution includes (1) $6.3 billion of payments on account of third-party claims, which includes non-controlled affiliate claims and (2) $1.3 billion of payments among the Lehman Debtors and their controlled affiliates. Cumulatively through the seventh distribution, Lehman Brothers Holdings' total distributions to unsecured creditors will amount to approximately $99.6 billion including (1) $72.4 billion of payments on account of third-party claims, which includes non-controlled affiliate claims and (2) $27.2 billion of payments among the Lehman Debtors and their controlled affiliates. In accordance with the Chapter 11 Plan, which was confirmed on December 6, 2011, and subject to available funds, the eighth distribution to creditors is anticipated to be made within five business days of September 30, 2015. This investment banking firm - the largest bankruptcy filing of all time - emerged from Chapter 11 protection in March 2012.
Dendreon Committee Sought
The Donahue Group of Dendreon's ad hoc equity shareholders filed with the U.S. Bankruptcy Court a motion for the appointment of an official equity security holders' committee and determination of prejudice for the previous non-appointment of an equity committee. The motion explains, "The added expense of an equity committee would not have adversely affected the debtor's estate because if the sale is confirmed in this matter there is apparently no debtor's estate remaining. The real cost would be to the note holders since they are receiving 100% of the assets of Dendreon....This is a case where the claims of the equity creditors seeking a separate committee have been excluded from the Official Committee, are of a different class and have no representation on the statutory committee formed to represent creditors....Dendreon claims that they engaged in a 'selling' process 'of sorts' in parallel with other efforts. You can't try to sell the company and also try to negotiate the elimination of the equity holder at the same time (Equity holders who also are/were inside shareholders). The company claims to have done this. The 'buyers' were likely always aware of the planned restructuring and thus had every reason to wait. This did not completely work as the 275 million dollar reorganization value was recognized to be extremely low by at least two bidders....As the Court understands the relationship between the complexity of a case and the need for equity representation by a statutory fiduciary, appointment of such a representative is more appropriate where the complexities of the case make it more difficult for another - here management - to protect equity interests as well as those of creditors. Dendreon, who may not be a going concern if the sale is permitted to stand, has spared no expense to rush through a BR that should have never been filed. The cost for the committee will be very inexpensive as a percentage of what the debtor has spent in this matter. All things considered the amount would be insignificant considering wrongful loss to equity by 100's of millions of dollars."
Allen Systems Group C.R.O. Hearing Continued
Allen Systems Group (ASG) filed with the U.S. Bankruptcy Court an amended notice of agenda of matters scheduled for Court consideration. According to the agenda, the Company's motion to retain Huron Consulting Services to provide a chief restructuring officer and other personnel and designate John C. DiDonato as chief restructuring officer is being continued. According to the docket, the "matter is continued by agreement of the parties to a date to be determined." As previously reported, the U.S. Trustee assigned to the case objected to the retention motion on March 16, 2015. The objection argued, "Mr. DiDonato's position as a member of the board of directors of Debtor ASG within the two years prior to the bankruptcy filing renders Mr. DiDonato and Huron ineligible for the accommodation the U.S. Trustee may provide to those professionals employed under the terms of the Jay Alix crisis management protocol that has been employed in this District."
WMI Liquidating Trust Shareholders Updated
WMI Liquidating Trust, which was formed pursuant to Washington Mutual's Seventh Amended Joint Plan, provided additional information regarding certain escrow CUSIPs issued to eligible former shareholders of Washington Mutual. As of the March 19, 2012 effective date of the Plan, Depository Trust Company (DTC) established and maintains positions in the escrow CUSIPs. These escrow CUSIPs represent nominees' positions that would be used to make future distributions, if any, of common stock issued by WMI Holdings Corp. (WMIHC). The only source of common stock available for any such a distribution would be from the 2.9 million of shares remaining on deposit in the disputed equity escrow. The trust will issue liquidating trust interests to Washington Mutual's former shareholders if the trust is able to monetize liquidating trust assets in amounts sufficient to pay-in-full claims held by beneficiaries of the trust who are senior to members of Classes 19 and 22, and if a shareholder satisfied all conditions applicable to receiving any such liquidating trust interests. The U.S. Bankruptcy Court confirmed Washington Mutual's Plan on February 24, 2012. This savings and loan holding company filed for Chapter 11 protection on September 26, 2008, listing $328 billion in pre-petition assets. Washington Mutual's bankruptcy remains the second-largest all time filing, second only to Lehman Brothers Holdings.