First Regional's amended liquidation plan takes effect as of Jan. 17

By Kali Hays

New York, Feb. 20 - First Regional Bancorp's amended Chapter 11 liquidation plan took effect on Jan. 17, according to a Thursday filing with the U.S. Bankruptcy Court for the Central District of California.

Confirmed on Aug. 23, the plan provides for the distribution of assets through the establishment of a liquidating trust.

Remaining assets, to the extent not converted to cash or other proceeds as of the plan effective date, will be sold by the liquidating trustee after the effective date, with all net cash proceeds to be distributed to creditors.

Creditor treatment

Treatment of creditors under the plan includes the following:

• Priority claims will be paid in full in cash;

• Holders of secured claims will retain all rights to their claims and receive cash or the property securing the claims;

• Holders of Trups claims, general unsecured claims and Federal Deposit Insurance Corp. receiver claims will receive a share of available cash;

• Holders of Erisa claims will keep $700,000 of a $950,000 class action settlement amount and turn the remaining $250,000 over to the company.

The insured directors will pay $250,000 to the Erisa claimants on the plan effective date; and

• Holders of equity interests will receive no distribution unless Trups, Erisa, general unsecured and FDIC receiver claims are paid in full.

First Regional Bancorp, a Los Angeles-based bank holding company, filed for bankruptcy on June 19, 2012. Its Chapter 11 case number is 12-31372.

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