Volunteer Energy amends plan ahead of disclosure statement hearing

By Sarah Lizee

Olympia, Wash., Jan. 4 – Volunteer Energy Services Inc. amended its Chapter 11 plan ahead of a disclosure statement hearing slated for Tuesday, according to court documents filed with the U.S. Bankruptcy Court for the Southern District of Ohio.

According to a redline filed Wednesday, changes were made to the plan’s terms regarding liquidating trust assets and the formation of an oversight committee.

The initial liquidating trust funding amount was lifted to $500,000 from $250,000. That amount will be funded from cash on the effective date.

An oversight committee will consist of one or more members that represent liquidating trust beneficiaries to advise and assist the liquidating trustee.

As reported in late October, the plan will be funded with cash and any other assets of the estate. The liquidating trust will be formed to distribute the assets.

Under the plan, debtor-in-possession financing claims and other priority claims will be paid in full in cash.

Holders of other secured claims will be paid in full in cash, receive the collateral securing the claims, or receive other treatment leaving the claims unimpaired.

Holders of prepetition asset-based loan financing claims will receive cash in an amount equal to any and all prepetition ABL debt owed under the ABL financing documents.

The ABL lender will receive the balance of the compromised fee claim but will waive the accrued fee claim. However, if the case is converted or dismissed, the accrued fee claim will be retained by the lender.

Holders of general unsecured claims will receive one or more distributions equal to their pro rata share of the general unsecured creditor interests as funds become available, following payment of all senior claims.

Interests will be canceled with no distribution to holders.

The Pickerington, Ohio-based retail energy provider filed Chapter 11 bankruptcy on March 25, 2022 under case number 22-50804.

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