Former Fuhu first amended plan of liquidation effective as of Jan. 25

By Caroline Salls

Pittsburgh, Jan. 25 – Arctic Sentinel, Inc.’s first amended plan of liquidation took effect on Wednesday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

Arctic Sentinel was formerly Fuhu, Inc.

The plan was confirmed on Nov. 30.

As previously reported, the company’s assets, including cash and causes of action, will be transferred to a liquidating trust. The trustee may use cash to investigate and prosecute causes of action.

Arctic Sentinel said additional funds may be available for distribution to holders of unsecured claims if the causes of action produce proceeds in excess of the amount of professional fees and administrative expenses.

Holders of secured claims will, at the option of the company, be paid in full, receive the collateral securing the claim or receive the proceeds from the sale of that collateral.

Holders of equity interests will receive no distribution under the plan.

Holders of unsecured claims will receive a share of liquidating trust interests following the payment of or reserve for payment of higher priority claims.

Arctic Sentinel, based in El Segundo, Calif., makes children’s computer tablets and filed for bankruptcy on Dec. 7, 2015. Its Chapter 11 case number is 15-12465.

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