GSC Group trustee files liquidating Chapter 11 plan and statement

By Caroline Salls

Pittsburgh, Aug. 23 - GSC Group, Inc.'s Chapter 11 trustee filed a liquidating plan and disclosure statement for the company Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

The plan also applies to affiliated debtors other than GSC Secondary Interest Fund, LLC.

A liquidating trust will be created and capitalized under the plan as the successor to GSC Group, and all debtors except for GSC Group will be wound down.

Reorganized GSC Group's sole purpose will be to hold a tax indemnification agreement, according to the disclosure statement.

Treatment of creditors will include:

• Holders of secured claims will either be paid in full in plan cash or receive the collateral securing the claims;

• Holders of other priority claims will receive plan cash in an amount sufficient to leave the rights to the claim unaltered;

• Holders of general unsecured claims will receive a share of remaining plan cash and a share of trust units; and

• Holders of equity interests will receive no distribution.

The disclosure statement hearing is scheduled for Oct. 5.

Florham Park, N.J.-based investment manager GSC Group filed for bankruptcy on Aug. 31, 2010. Its Chapter 11 case number is 10-14653.

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