Prime Trust’s Chapter 11 plan effective as of Jan. 5

By Sarah Lizee

Olympia, Wash., Jan. 5 – Prime Trust, LLC’s Chapter 11 plan went into effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Dec. 21, as previously reported.

Distributions under the plan are being funded with wind-down debtor assets.

Secured tax claims, other secured claims and other priority claims are unimpaired by the plan.

Holders of Prime Core, Prime Trust, Prime IRA and Prime Digital general unsecured claims will receive their pro rata share of cash and crypto following the satisfaction of debtor-in-possession facility claims.

Holders of convenience claims will receive cash in an amount equal to 70% of their claims, to be paid from wind-down debtor assets.

Holders of section 510(b) claims will receive nothing under the plan.

Intercompany claims will be either reinstated or converted to equity, otherwise set off, settled, distributed, contributed, canceled or released.

Intercompany interests will be either reinstated or set off, settled, addressed, distributed, contributed, merged or canceled.

Existing equity will be extinguished with no distribution.

The Las Vegas-based cryptocurrency custodian filed bankruptcy on Aug. 14 under Chapter 11 case number 23-11161.

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