Former Coda Holdings wins disclosure statement OK; confirmation Nov. 1

By Jim Witters

Wilmington, Del., Sept. 24 - Adoc Holdings, Inc., formerly Coda Holdings, Inc., received approval of the disclosure statement for its Chapter 11 plan of liquidation during a Sept. 24 hearing in the U.S. Bankruptcy Court for the District of Delaware.

The central component of the Chapter 11 plan is the establishment of a liquidation trust to liquidate the company's assets, including specified causes of action.

WARN settlement

The debtor also announced a settlement with claimants under the Worker Adjustment and Retraining Notification Act that removed one obstacle to the confirmation of a plan.

Julia B. Klein, attorney for the WARN claimants, said there is an agreement in principal but some terms remain under negotiation.

A motion for court approval of the WARN settlement will come by Sept. 27, attorneys said.

The agreement calls for the WARN claimants to be recognized as a class entitled to an allowed priority claim of $430,000 and a general unsecured claim of about $1.1 million.

Creditor treatment

Treatment of creditors under the proposed plan includes:

• Administrative claims, priority tax claims and priority claims will be paid in full in cash;

• Holders of other secured claims will either receive the proceeds from the sale of the collateral securing the claims, be paid in cash or receive the collateral securing the claims;

• Holders of deficiency claims will receive a share of lender beneficial interests and liquidating trust distributions;

• Holders of general unsecured claims will receive a share of general unsecured creditor beneficial interests in the liquidating trust and receive liquidating trust distributions; and

• Holders of equity interests and subordinated claims will receive no distribution.

The plan confirmation hearing is scheduled for 11 a.m. ET on Nov. 1.

Coda, a Los Angeles-based manufacturer of electric cars and energy products based on lithium-ion batteries, filed for bankruptcy on May 1. Its Chapter 11 case number is 13-11153.

© 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.