Plastiq files combined disclosure statement and Chapter 11 plan

Chicago, July 7 – Plastiq, Inc. filed a first draft of a combined disclosure statement and Chapter 11 plan with the U.S. Bankruptcy Court for the District of Delaware.

In the original petition, the company listed 1,000 to 5,000 creditors, $50 million to $100 million in assets and $50 million to $100 million in liabilities.

Its largest unsecured creditors were Brex, based in San Francisco, with a $3.3 million trade debt claim and Deloitte & Touche LLP, based in San Francisco, with a $2 million professional fees claim.

Creditor treatment

The company outlined seven classes of creditors.

Proposed credit treatment would cure all priority non-tax claims (class 1), although there was no estimate listed on the amount of total claims.

Other secured claims (class 2) would be made whole.

Prepetition loan claims in the amount of $43,334,584.39 would be fully recovered, but class 3 is deemed impaired and entitled to vote.

General unsecured claims (class 4) for an estimated $18,729,998 are impaired. Creditors are entitled to vote. Holders would receive a pro rata share of litigation trust assets.

Subordinated claims, intercompany claims and interest would not be recovered. Classes 5, 6 and 7 are deemed to reject the plan.

Sale recap

Plastiq is currently looking to close the sale of its assets by July 31.

The company has a stalking horse agreement with Priority Technology Holdings, Inc.

The stalking horse bid includes a cash payment of $27.5 million and assumed liabilities.

An auction is scheduled for July 25 and July 27.

Timeline

Plastiq is proposing an Aug. 30 voting deadline.

A proposed confirmation hearing date is Sept. 7.

San Francisco-based Plastiq provides a software platform for business-to-business payment automation. The company filed bankruptcy on May 24 under Chapter 11 case number 23-10671.

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