Dowling College amended liquidation plan confirmed by court

By Caroline Salls

Pittsburgh, Dec. 20 – Dowling College’s amended plan of liquidation was confirmed on Thursday by the U.S. Bankruptcy Court for the Eastern District of New York.

Under the plan, administrative expense claims will be paid in full in cash by a plan administrator from an administrative reserve.

Debtor-in-possession term loan lenders and holders of priority tax claims and priority non-tax claims will be paid in full in cash.

Holders of pre-bankruptcy series 1996, series 2002, series 2006 and series 2015 bonds will receive distributions from the proceeds of the collateral securing the bonds.

Since the proceeds of the collateral securing the senior secured claims and DIP term loans is insufficient to satisfy those claims in full, other secured claims will be rendered unsecured.

Holders of general unsecured claims will receive distributions from an unsecured creditor trust.

Dowling said the plan will be funded by a combination of the proceeds from the sale of some of its assets, additional funding and/or the use of cash collateral and a priority claim contribution.

Dowling is based in Oakdale, N.Y. The college filed for bankruptcy on Nov. 29, 2016 under Chapter 11 case number 16-75545.

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