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Published on 1/15/2014 in the Prospect News Distressed Debt Daily.

Former Coda Holdings amends plan treatment for WARN priority claims

By Caroline Salls

Pittsburgh, Jan. 15 - Adoc Holdings, Inc., formerly Coda Holdings, Inc., filed an amended plan of liquidation that changes the proposed treatment for holders of WARN Act class priority claims, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the amended plan, holders of WARN class priority claims will receive distributions from the liquidating trust established under the plan.

Previously, these creditors were slated to be paid in full through the deposit of $430,000 into an escrow account.

The amended plan also caps fee claims at $2.55 million.

As previously reported, the central component of the plan is the establishment of the liquidation trust to liquidate the company's assets, including specified causes of action.

Treatment of creditors under the amended 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;

• Holders of WARN class priority claims will receive liquidating trust distributions; and

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

Coda, a Los Angeles-based manufacturer of electric cars and energy products based on lithium-ion batteries, filed for bankruptcy on May 1, 2013. Its Chapter 11 case number is 13-11153.


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