Former Palm Harbor Homes' plan of liquidation takes effect

By Caroline Salls

Pittsburgh, Dec. 5 - PHH Co., Inc.'s plan of liquidation took effect on Dec. 2, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Nov. 17. PHH was formerly Palm Harbor Homes.

As previously reported, substantially all of Palm Harbor's assets were sold in February 2011 to stalking horse bidder Fleetwood Homes Inc., an affiliate of Cavco Industries Inc., for $83.9 million.

The liquidation plan calls for the formation of a post-consummation trust to administer the remaining assets, according to court documents.

The liquidation plan includes the following treatment of creditors:

• Holders of priority claims will be paid in full in cash;

• Holders of other secured claims will receive either the collateral securing the claim or cash equivalent to the value of the collateral;

• Holders of 3.25% convertible senior notes will receive a share of a $54.78 million allowed claim, for a recovery ranging from 16.7% to 21%;

• Holders of general unsecured claims will receive their share of the available cash or other consideration, including proceeds of the post-consummation trust assets for a recovery ranging from 16.7% to 21%; and

• Holders of inter-company claims and equity interests receive nothing.

Palm Harbor Homes, a Dallas-based maker of multi-section manufactured and modular homes, filed for bankruptcy on Nov. 29, 2010. Its Chapter 11 case number is 10-13850.

© 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.