First NBC Bank Holding Chapter 11 plan effective as of Jan. 22

By Sarah Lizee

Olympia, Wash., Jan. 25 – First NBC Bank Holding Co.’s Chapter 11 plan of reorganization went into effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Eastern District of Louisiana.

The plan was confirmed on May 15, 2020, as previously reported.

In November, the court gave the company an extension of its deadline for obtaining investor funding and occurrence of the effective date through Jan. 22 and Jan. 29, respectively.

At that time, though all first-round investors had placed at least 10% of their investments in an escrow account, the remaining portion of the investment had not yet been deposited as a result of the investors’ concerns related to an appeal from the Department of Treasury.

Friday’s notice said the first-round investment has been made immediately available for disbursement from escrow.

Under the plan, administrative claims and priority claims will be paid in full in cash.

Holders of general unsecured claims will receive cash equal to the amount of indenture trustee fees and expenses, as well as a share of litigation and distribution trust assets. These creditors will also have the right to elect a cash or a debt alternative treatment option.

Holders of secured claims will receive no distribution other than the surrender of the collateral securing the claims.

The rights of common stockholders and series D and series E preferred equityholders will be left unaltered.

Administrative expense claims and priority claims, including priority tax claims, will be paid in full in cash.

First NBC, a New Orleans-based bank holding company, filed bankruptcy on May 11, 2017. The Chapter 11 case number is 17-11213.

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