Peer Street gives voting results for Chapter 11 plan

By Sarah Lizee

Olympia, Wash., April 25 – Peer Street, Inc. disclosed the voting results for its Chapter 11 plan in a tabulation summary filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The results are as follows:

• 11 holders, or 91.67% in number, of $151,651.37, or 14.42% in amount, of general unsecured claims against Peer Street voted to accept the plan, while one holder, or 8.33% in number, of $900,000, or 85.58% in amount, voted to reject the plan;

• 16 holders, or 100% in number, of $568,220.29, or 100% in amount, of general unsecured claims against PS Funding Inc. voted to accept the plan;

• 73 holders, or 97.33% in number, of $1.53 million, or 99.73% in amount, of general unsecured claims against Peer Street Funding LLC voted to accept the plan, while two holders, or 2.74% in number, of $4,147.92, or 0.27% in amount, voted to reject the plan;

• One holder, or 100% in number, of $1,995.40, or 100% in amount, of general unsecured claims against PS Portfolio ST1, LLC voted to accept the plan;

• Two holders, or 100% in number, of $31,394, or 100% in amount, of general unsecured claims against Peer Street Opportunity Fund GP, LLC voted to accept the plan;

• One holder, or 100% in number, of $850, or 100% in amount, of general unsecured claims against Peer Street Opportunity Investors II, LP voted to accept the plan;

• 359 holders, or 98.36% in number, of $17.94 million, or 80.29% in amount, of pocket one-month claims voted to accept the plan, while six holders, or 1.64% in number, of $4.4 million, or 19.71% in amount, voted to reject the plan;

• 22 holders, or 95.65% in number, of $1.16 million, or 99.66% in amount, of pocket three-month claims voted to accept the plan, while one holder, or 4.35% in number, of $3,915.23, or 0.34% in amount, voted to reject the plan;

• 859 holders, or 98.85% in number, of $44.33 million, or 99.63% in amount, of liquidated mortgage-payment-dependent note claims voted to accept the plan, while 10 holders, or 1.15% in number, of $166,531, or 0.37% in amount, voted to reject the plan;

• 169 holders, or 98.26% in number, of $327,396, or 98.05% in amount, of convenience liquidated mortgage-payment-dependent note claims voted to accept the plan, while three holders, or 1.74% in number, of $6,500, or 1.95% in amount, voted to reject the plan;

• 843 holders, or 99.06% in number, of $57.7 million, or 99.76% in amount, of unliquidated mortgage-payment-dependent note claims voted to accept the plan, while eight holders, or 0.94% in number, of $140,082, or 0.24% in amount, voted to reject the plan;

• 207 holders, or 96.28% in number, of $435,143, or 97.06% in amount, of convenience unliquidated mortgage-payment-dependent note claims voted to accept the plan, while eight holders, or 3.72% in number, of $13,167, or 2.94% in amount, voted to reject the plan;

• 798 holders, or 98.52% in number, of $1.79 million, or 99.75% in amount, of “for the benefit of” account claims voted to accept he plan, while 12 holders, or 1.48% in number, of $4,557.05, or 0.25% in amount, voted to reject the plan;

• 31 holders, or 100% in number, of $394,635.51, or 100% in amount, of payment-dependent promissory note claims voted to accept the plan; and

• 16 holders, or 100% in number, of $9.57 million, or 100% in amount, of OppFund LP interests voted to accept the plan.

The confirmation hearing is scheduled for April 26.

As previously reported, after negotiations with the official committee of unsecured creditors and creditors Pacific Funding Trust 1002 and Pacific RBLF Funding Trust, the debtors proposed a plan for the resolution of their cases.

Through the plan, the debtors will transition management of the run-off of their mortgage assets to Colchis, an affiliate of the Pacific creditors, liquidate the non-loan assets, wind down their corporate affairs and make distributions to investors and other creditors.

Priority non-tax claims and other secured claims are unimpaired.

Holders of class 3 prepetition loan claims will receive all available cash collateral; conveyance, transfer and assignment of the debtors’ interest in the pre-effective date servicing advances and pre-effective date servicing fees; the proceeds of the prepetition agent’s collateral received after the effective date, subject to funding of the corporate debtor reserve, as applicable; and a pro rata share of the distributable cash of each obligor debtor, which will be pari passu with class 4 at the respective obligor debtor. This is expected to result in a 100% recovery. The company estimates $27.36 million in class 3 claims.

Holders of class 4 general unsecured claims will receive a pro rata share of distributable cash, if any. This is expected to receive a recovery of zero to 5%. The amount of claims in this class is to be determined, but about $$26 million non-customer claims have been filed.

Holders of class 5 intercompany claims and interests will have their claims either reinstated or canceled.

Holders of class 6 securities law claims will receive no distribution.

Holders of class 7 parent interests will receive nothing.

Holders of class 8 Pocket one-month claims and class 9 Pocket three-month claims will receive a cash payment on the effective date equal to their pro rata share of a distributable cash at PS Warehouse II, LLC, and subsequent to the effective date, a pro rata share of any forfeited distributions made on account of class 9 claims, in each case until all allowed claims in this class are paid in full. The estimated amount of claims in class 8 is $40.19 million, and the estimated recovery is 85% to 95%. The estimated amount of claims in class 9 is $1.34 million, and the estimated recovery is 90% to 93%.

Holders of class 10 liquidated mortgage-payment-dependent note claims will receive a cash payment equal to their pro rata share of the difference of the proceeds of the underlying loan minus certain amounts according to a waterfall; and a number of funding pool units, valued at one dollar each, equal to the amount held back and contributed by the plan administrator. The estimated amount of claims in this class of $88.83 million, and the estimated recovery is 85% to 90%.

Holders of $3.99 million class 10-1 convenience liquidated MPDN claims will receive a recovery of 80% to 90%. Holders of $112.14 million class 11 unliquidated MPDN claims and $2.86 million class 11-1 convenience unliquidated MPDN claims are expected to receive a recovery of zero to 90%. The company said the high end of the recovery percentage for these classes assumes that an underlying loan associated with the claim has fully performed and been repaid. The low end assumes there is no recovery on the underlying loan.

Holders of $31.26 million of FBO account claims are expected to receive a recovery of 95% to 100%.

Holders of $2.09 million of payment-dependent promissory note claims will receive a recovery of 85% to 95%.

Holders of OppFund LP interests are expected to receive a recovery of 75% to 90%.

The El Segundo, Calif.-based company filed bankruptcy on June 26, 2023 under Chapter 11 case number 23-10815.

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