Seaboard Realty amended liquidation plan confirmed by bankruptcy court

By Caroline Salls

Pittsburgh, May 18 – Seaboard Realty, LLC’s amended plan of liquidation was confirmed Thursday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the principal features of the plan are the settlement of specified lender claims, causes of action and release, professional fee claims, substantial contribution claims and Dechert claims and the establishment of various escrow accounts and trusts in connection with those settlements.

In addition, Seaboard announced earlier this week that it reached a settlement with lenders that breaks an impasse with Cedar Hill Capital, LLC and the other settling lenders and plan debtors. Specifically, the company said the dispute between the parties involves an inter-creditor lien priority dispute and the allocation of sale proceeds.

As a result of the settlement, all of the plan debtors’ settling lenders support the plan, and “thereby, put in place one of the keys to unlocking the value in the plan debtors.”

Under the settlement, Cedar Hill will receive a $2.93 million payment, and UCF I Trust 1, LLC, CPR Money, LLC and Annemid RI Noteholder, LLC will collectively be paid $6.87 million.

The payments will be funded by $9.4 million that would have been contributed to a settling lender escrow under a previous version of the plan, $300,000 from Chicago Title Insurance Co. for the benefit of Cedar Hill and $150,000 for the benefit of Cedar Hill that would have been withheld from cash included in a professional claims escrow account.

According to the disclosure statement for the plan, a wind-down administrator will be responsible for administering the plan, winding up Seaboard’s affairs, resolving specified claims and overseeing distributions.

Priority claims will be paid in full in cash.

Holders of mortgage claims will be treated as released creditors if they vote to accept the plan and will receive nothing if they reject it.

Holders of settling lender claims will be treated as a released party and be treated in accordance with the settlement.

Holders of general unsecured claims will receive an interest in a distribution escrow sub-account.

If holders of equity interests and investor claims voted to accept the plan, they will be treated as released parties and receive a beneficial interest in an investor trust. If the class voted to reject the plan, these creditors will receive no distribution.

Seaboard Hotel is a subsidiary of Seaboard Realty, which owns office, hotel and residential properties throughout Stamford, Conn. The company filed for bankruptcy Dec. 14, 2015 under Chapter 11 case number 15-12507.

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