Northeast Biofuels files liquidation plan to distribute sale proceeds

By Caroline Salls

Pittsburgh, Oct. 5 - Northeast Biofuels, LP filed its plan of liquidation and related disclosure statement Friday with the U.S. Bankruptcy Court for the Northern District of New York.

The plan calls for the wind down of the company's businesses and the liquidation of its remaining assets. The liquidation proceeds will be distributed to creditors.

According to the disclosure statement, the company has reached an agreement with its official committee of unsecured creditors, its secured lenders and Sunoco under which a minimum of $400,000 and a maximum of $600,000 of the sale proceeds will be available for distribution to unsecured creditors.

Under the plan:

• Holders of administrative claims, priority claims and priority tax claims will be paid in full in cash;

• Holders of secured lender claims will receive a share of the net distributable proceeds and any amount in cash by which the unsecured distributable proceeds exceeds the cap;

• Holders of unsecured claims will receive a share of distributable proceeds, not to exceed their recovery cap; and

• Holders of equity interests will receive no distribution.

The disclosure statement hearing is scheduled for Oct. 29.

Northeast Biofuels filed for bankruptcy on Jan. 14, 2009. Its Chapter 11 case number is 09-30057.

© 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.