AFA: Disclosure statement approval, plan confirmation set for March 5

By Lisa Kerner

Charlotte, N.C., Jan. 16 - AFA Investment Inc. will hold a combined hearing to approve its disclosure statement and confirm its plan of liquidation on March 5 at 2 p.m. ET, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The disclosure statement and plan were filed on Dec. 24.

As previously reported, AFA said the plan will facilitate the continued liquidation and distribution of the AFA debtors' remaining assets and the wind-down of their estates, consistent with a previously approved global settlement.

According to AFA, the remaining assets consist mainly of sale proceeds and causes of action.

Treatment of creditors will include the following:

• Administrative claims, priority tax claims, other secured claims and non-tax priority claims will be paid in full in cash;

• WARN claims will be satisfied in accordance with a settlement, with the total recovery amount capped at $1.65 million;

• Second-lien secured lender claims will be treated in accordance with a settlement agreement;

• Holders of 20-day claims will receive a share of a creditor recovery pool up to the full amount of the claim;

• Holders of general unsecured claims will receive a share of any remaining amounts in the creditor recovery pool after payment of all other allowed claims payable from the pool and expenses. AFA said unsecured creditors are not expected to receive a distribution; and

• Holders of equity interests will receive no distribution.

AFA Investment is the parent company of AFA Foods Inc., a King of Prussia, Pa.-based processor of ground beef products. The company filed for bankruptcy on April 2, 2012. Its Chapter 11 case number is 12-11127.

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