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Phoenix Brands files plan of liquidation based on Fifth Street deal
By Caroline Salls
Pittsburgh, Nov. 14 – Phoenix Brands LLC filed its plan of liquidation and related disclosure statement Friday with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, Phoenix received court approval of a stipulation that resolves Fifth Street Finance Corp.’s motion to convert Phoenix Brands’ Chapter 11 case to Chapter 7.
Under the stipulation, Fifth Street Finance will have a $41.22 million general unsecured claim against each of the Phoenix Brands debtors.
Under the plan, Fifth Street must receive at least $2 million in cash on the effective date, with additional cash distributions to be made after that date.
Administrative expense claims, priority tax claims, secured tax claims and priority non-tax claims will be paid in full in cash.
Holders of other secured claims will either be paid in full in cash or receive the collateral securing the claims.
Holders of general unsecured claims against Phoenix Brands LLC, Phoenix Brands Canada ULC and Phoenix Brands Canada Laundry LLC will receive a share of distributions in accordance with a distributions waterfall. Holders of general unsecured claims against Phoenix Brands Parent LLC, Phoenix North LLC and Phoenix Rit LLC will receive no distribution.
Equity interests will be cancelled, and holders will receive no distribution.
A hearing on provisional approval of the disclosure statement is scheduled for Nov. 21.
Stamford, Conn.-based Phoenix Brands sources, manufactures and distributes laundry and fabric care products. The company filed for bankruptcy on May 19 under Chapter 11 case number 16-11242.
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