AltosGroups files plan of reorganization and disclosure statement

By Sarah Lizee

Olympia, Wash., Feb. 17 – AltosGroups, LLC filed a Chapter 11 plan and related disclosure statement on Thursday in the U.S. Bankruptcy Court for the Middle District of Florida.

The plan provides that holders of administrative claims, priority claims and priority tax claims will be paid in full.

On the effective date, holders of the One 10 Hotel claims will receive cash funds of $3 million, holders of the Hyatt House KC claims will receive cash funds of about $200,416.06, holders of the Maumee unsecured claims will receive cash funds in the amount of $229,474.08, and holders of A&B Kanab unsecured claims will receive cash funds in the amount of $1.23 million, in each case minus U.S. trustee costs on account of disbursement.

All of the above unsecured claimholders will also receive annual payments under a cash-flow note issued on the effective date; and a pro rata share of 50% of the net proceeds of any causes of action after payment of all administrative expenses and post-effective date professional fees and costs as approved by the court.

The cash-flow note will require annual payments for five years after the effective date equal to 50% of any surplus of the reorganized debtor’s actual cash balance above the ending cash balance on the financial projections, which payments will be distributed pro rata to all cash-flow note holders.

Holders of Altos-FL general unsecured claims will receive annual payments under the cash-flow note, and a pro rata share of 50% of the net proceeds of causes of action after payment of administrative expenses and post-effective date professional fees and costs.

Holders of Altos-NC claims will receive a pro rata share of 50% of the net proceeds of causes of action after payment of administrative expenses and post-effective date professional fees and costs. These holders will also receive the net proceeds from the liquidation of Altos-NC’s personal property.

Interest holders will retain their membership interests.

Funds generated from the debtors’ operations through the effective date will be used for plan payments.

AltosGroups is a Davenport, Fla.-based hotel lender. It filed Chapter 11 bankruptcy on Jan. 9 under case number 23-00048.

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