Fairchild's plan of liquidation gets confirmed by bankruptcy court

By Lisa Kerner

Charlotte, N.C., Dec. 17 - Fairchild Corp.'s plan of liquidation was confirmed by the U.S. Bankruptcy Court for the District of Delaware at a hearing on Dec. 17, according to an attorney familiar with the case.

As previously reported, a liquidating trust will be established on the plan effective date to manage the company's affairs, liquidate its remaining assets and wind down its businesses.

Treatment of creditors will include:

• Holders of administrative claims and priority claims will be paid in full in cash;

• Claims secured by real property will be reinstated and assumed by the liquidating trust;

• Holders of other secured claims will either have their claims reinstated or will receive cash equal to the claim or cash equal to the amount of the collateral securing the claim;

• Holders of general unsecured claims will receive a share of any distributable assets remaining after priority claims have been paid in full; and

• Interest holders will receive a share of distributable assets in the highly unlikely event that any are remaining after all other claims have been paid in full.

Fairchild, a Dulles, Va.-based precision fastening systems manufacturing company, filed for bankruptcy on March 18, 2009. Its Chapter 11 case number is 09-10899.

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