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Fairfield Residential's plan of reorganization gets court confirmation
By Lisa Kerner
Charlotte, N.C., July 6 - Fairfield Residential LLC's plan of reorganization was confirmed on Tuesday by the U.S. Bankruptcy Court for the District of Delaware, according to an attorney close to the case.
As previously reported on June 15, Fairfield filed an amended plan of reorganization and related disclosure statement based on a new investment agreement with Brookfield Asset Management Inc.
A previous plan with Och-Ziff Real Estate Acquisitions LP as the investor ended in a settlement that was approved by the court in April.
Treatment of creditors
Under the amended plan, treatment of creditors will include:
• Holders of Capmark claims will receive 50% of the closing payment related to a $19.25 million cash payment to be made to FF Properties, Inc. and Fairfield; then 60% of effective date distributions of all distributable cash until $38.2 million has been distributed; then 50% of effective date distributions of distributable cash and 60% of subsequent distributions of distributable cash until the holders of Capmark claims have received $39.75 million; then 55% of subsequent distributions until these claims have been paid in full; and, once all Fairfield/FirstTier subsidiary claims have been paid, 50% of all distributable cash;
• Holders of Fairfield/FirstTier subsidiary general unsecured claims will receive 50% of the closing payment related to a $19.25 million cash payment to be made to FF Properties, Inc. and Fairfield; then 40% of effective date distributions of all distributable cash until $38.2 million has been distributed; then 50% of effective date distributions of distributable cash and 40% of subsequent distributions of distributable cash until the holders of Capmark claims have received $39.75 million; then 45% of subsequent distributions until these claims have been paid in full; and, once all Fairfield/FirstTier subsidiary claims have been paid, 50% of all distributable cash;
• Wachovia facility claims will be satisfied either by the sale of the real estate securing the facility or the return of the collateral;
• Holders of general unsecured claims against Fairview Homes Inc., Fairview Residential LP, Fairview Residential CA LP and Fairview Residential WA LLC will receive a share of cash proceeds from the liquidation of the estate against which the holder has a claim;
• Intercompany claims will be settled and discharged; and
• Existing equity interest holders will receive no distribution.
Fairfield, a San Diego-based multifamily real estate operating company, filed for bankruptcy on Dec. 20, 2009. Its Chapter 11 case number is 09-14378.
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