Plastiq gets interim OK of disclosure statement; plan hearing set

By Sarah Lizee

Olympia, Wash., Aug. 1 – Plastiq, Inc. received interim approval of the disclosure statement for its Chapter 11 plan, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for Sept. 14.

As previously reported, the company outlined seven classes of creditors in its plan.

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 $43.34 million would be fully recovered, but class 3 is deemed impaired and entitled to vote.

General unsecured claims (class 4) for an estimated $27.73 million are impaired. Creditors are entitled to vote. Holders would receive a pro rata share of litigation trust assets. The expected recovery for this class ranges from 4.6% to 5.4%.

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

Sale recap

On Monday, Plastiq received court approval to sell its assets to stalking horse bidder Priority Technology Holdings, Inc.

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

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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