Shift Technologies files Chapter 11 plan of liquidation

By Sarah Lizee

Olympia, Wash., Feb. 21 – Shift Technologies Inc. filed a Chapter 11 plan of liquidation and disclosure statement with the U.S. Bankruptcy Court for the Northern District of California on Tuesday.

The debtors’ remaining assets largely consist of cash and causes of action.

The plan provides for the creation of a liquidating trust and appointment of a liquidating trustee, who will administer and liquidate all remaining property of the debtors and their estates.

The plan also provides that the debtors may seek approval of an asset sale at confirmation if the debtors conclude that an asset sale at confirmation will yield a higher or better return to the estates than a sale by the liquidating trust.

Under the plan, administrative expense claims, professional fee claims, priority tax claims, secured claims and other priority claims will be unimpaired.

Holders of general unsecured claims will receive a pro rata beneficial interest in a liquidating trust.

Holders of intercompany claims and equity interests will not be entitled to any distribution.

The confirmation hearing is scheduled for March 7.

Shift Technologies is a San Francisco-based used car e-commerce platform. The company filed bankruptcy on Oct. 9 under Chapter 11 case number 23-30687.

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