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API Americas submits plan of liquidation based on global settlement
By Caroline Salls
Pittsburgh, May 8 – API Americas Inc. filed a combined plan of liquidation and disclosure statement Thursday with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, a global settlement reached with API’s lender agent created a path to a plan of liquidation through the funding of amounts sufficient to satisfy claims and the resolution and reduction of significant intercompany claims that would potentially diminish returns to unsecured creditors.
Under the plan, administrative expense claims, priority tax claims, priority non-tax claims and a U.K. borrower claim will be paid in full in cash.
Holders of other secured claims will be paid in full in cash or receive the collateral securing the claim.
Holders of a pre-bankruptcy lender secured claim will receive an $823,000 closing date payment, $1.21 million of foils sale proceeds, 87% of deferred closing payments, 78% of Schlenk receivables, 78% of any remaining portion of an administrative funding amount after senior claims are paid, any unused portion of an SAP claims cushion and any other available estate funds.
Holders of general unsecured claims will receive a share of an estate funding amount and proceeds from any avoidance actions.
Holders of equity interests and intercompany claims will receive no distribution.
A hearing on approval of the disclosure statement is scheduled for May 28. API is asking the court to schedule the plan confirmation hearing for July 15.
API is a Lawrence, Kan.-based foils and laminates manufacturer. The company filed bankruptcy on Feb. 2 under Chapter 11 case number 20-10239.
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