Alpha Guardian plan of reorganization confirmed by bankruptcy court

By Caroline Salls

Pittsburgh, July 28 – Alpha Guardian’s plan of reorganization was confirmed on Monday by the U.S. Bankruptcy Court for the District of Nevada.

According to the disclosure statement, the plan calls for the continued operations of the reorganized Alpha Guardian debtors following the plan effective date.

The plan is based on a global settlement between the company and its official committee of unsecured creditors under which Alpha Bravo Holding Co., Inc. will receive 100% of the equity securities in the reorganized debtors in exchange for the Alpha Bravo debtor-in-possession loan.

Alpha Bravo’s other claims will be treated as general unsecured claims, $2.75 million of which will be subordinated to the payment of all other general unsecured claims.

A litigation trust will be established under the plan, and avoidance actions, commercial tort claims and the right to receive 50% of carryback net operating loss proceeds will be transferred to the trust, along with two settlement contributions.

Alpha Bravo will not participate in any recovery from the trust’s portion of the carryback NOL proceeds.

The holders of NAPS secured claims will retain their lien in the applicable collateral until the claims are paid in full with interest. These creditors will receive monthly payments over a period of 60 months.

Holders of T.A. 2000 secured claims will receive monthly payments over a period of three months.

If holders of priority unsecured claims voted to accept the plan, they will receive payments over a period of 12 months with interest. If they did not accept the plan, these creditors will receive a cash payment on the plan effective date.

Holders of general unsecured claims will receive a share of class B litigation trust interests, entitling them to a share of litigation trust assets.

Holders of product warranty claims will retain their claims.

Equity securities will be cancelled, and holders will not receive any distribution.

Alpha Guardian is a Henderson, Nev., safe and secure storage producer. The company filed bankruptcy on Feb. 24 under Chapter 11 case number 20-11016.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.