FormTech Industries: Court confirms company's liquidation plan

By Lisa Kerner

Charlotte, N.C., March 30 - FormTech Industries, LLC's amended plan of liquidation was confirmed, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, a liquidating trust will be established under FormTech's plan to make distributions and resolve disputed claims.

Treatment of creditors will include:

• Any secured lender claims not resolved by credit bid or payments made under the company's asset sale will be waived;

• Holders of general unsecured claims will receive a share of a creditor carveout account after payment of liquidating trust expenses and pre-bankruptcy priority claims, for a recovery of 0.05% to 2%; and

• Holders of interests and intercompany claims will receive no distribution.

FormTech is a Royal Oak, Mich., provider of forged metal components to the automotive light vehicle, heavy truck and industrial markets of North America. The company filed for bankruptcy on Aug. 26, 2009, and its Chapter 11 case number is 09-12964.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.