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Burro Sand’s disclosure statement hearing scheduled for Dec. 13
By Sarah Lizee
Olympia, Wash., Nov. 6 – Aequor Mgt LLC’s (Burro Sand) hearing on approval of the disclosure statement for its recently amended Chapter 11 plan of liquidation has been scheduled for Dec. 13, according to an order filed with the U.S. Bankruptcy Court for the Eastern District of Texas.
The plan will liquidate the debtors as separate entities and provide for differing recoveries to their respective creditors.
The plan also represents a compromise between the debtors and some of their insiders, who are alleged to have liabilities to the debtors for alleged constructively fraudulent transfers. These insiders will pay $2 million to the debtors to help fund the plan and provide recoveries to creditors of the debtors, and they will release their claims against the debtors.
The debtors will not receive a discharge.
Under the plan, holders of administrative claims will receive a 100% recovery.
Priority claims and the $6.4 million CL V Funding, LLC (Castlelake) secured claim against Aequor Holdings will be paid in full.
Holders of unsecured claims against Aequor Holdings are expected to receive a recovery of less than 1.5%. The estimated amount of claims in this class is about $35 million.
Holders of priority claims, secured property tax claims, the $6.52 million Independence TX, LLC secured claim, the $3 million Castlelake secured claim and the IRS priority claims against Aequor Mgt will be paid in full.
Holders of unsecured claims against Aequor Mgt are expected to receive a recovery of 2%. The estimated amount of claims in this class is $55 million.
Tyler, Tex.-based Burro Sand is a frac sand mining and processing plant. The company filed bankruptcy on Jan. 5, 2023 under Chapter 11 case number 23-60010.
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