Carla’s Pasta files Chapter 11 plan, seeks June 11 statement hearing

By Sarah Lizee

Olympia, Wash., June 1 – Carla's Pasta, Inc. filed a Chapter 11 plan and related disclosure statement on Saturday with the U.S. Bankruptcy Court for the District of Connecticut.

The plan contemplates an orderly liquidation of the debtors’ assets via a liquidating custodian.

Under the plan, administrative claims and priority tax claims will be paid in full.

Creditors will receive treatment based in which debtor their claim relates to.

For classes in the Carla’s Pasta case:

• Holders of the lenders secured claim will receive distributions of all of the remaining cash and assets of the debtors, less amounts paid or reserved for payment of administrative expenses, priority claims, other secured claims, the unsecured creditors’ fund, and wind down funds;

• Holders of general unsecured claims will receive their pro rata share of the unsecured creditors’ fund any other assets after the effective date that will be liquidated to cash that is not subject to the lenders secured claim;

• Holders of lenders deficiency claims will receive a pro rata payment pari passu with the general unsecured claimholders from any other assets after the effective date that will be liquidated to cash that is not subject to the lenders secured claim; and

• Equity interests will be canceled with no distribution.

For classes in the Suri Realty case:

• Holders of the lenders secured claim will receive distributions of all of the remaining cash and assets of the debtors, less amounts paid or reserved for payment of administrative expenses, priority claims, other secured claims, the unsecured creditors’ fund, and wind down funds;

• Holders of the Dennis Group unsecured claims will be treated in line with a settlement;

• Holders of lenders deficiency claims and general unsecured claims will receive no property or distributions;

• Equity interests will be canceled with no distribution.

The debtors are seeking a June 11 hearing on approval of the disclosure statement.

The South Windsor, Conn.-based pasta manufacturing company filed bankruptcy on Feb. 8 under Chapter 11 case number 21-20111.

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