Plastiq’s Chapter 11 plan of liquidation effective as of Sept. 29

By Sarah Lizee

Olympia, Wash., Oct. 2 – Plastiq, Inc.’s Chapter 11 plan of liquidation went into effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware on Friday.

The plan was confirmed on Sept. 15.

As previously reported, all 30 holders of $130.02 million of class 3 prepetition loan claims voted to accept the plan.

Meanwhile, 11 holders, or 91.67% in number, of $27.85 million, or 97.88% in amount, of class 4 general unsecured claims voted to accept the plan, while one holder, or 8.33% in number, of $604,408.46, or 2.12% in amount, voted to reject the plan.

Under the plan, priority non-tax claims and other secured claims will be paid in full.

Prepetition loan claims in the amount of $43.34 million would be fully recovered, but class 3 is deemed impaired.

General unsecured claims (class 4) for an estimated $27.73 million are impaired. Holders will 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 were deemed to reject the plan.

Plastiq received court approval in July to sell its assets to stalking horse bidder Priority Technology Holdings, Inc. for $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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