Former Champion Enterprises' plan of liquidation effective May 23

By Caroline Salls

Pittsburgh, May 23 - CEI Liquidation Estates' modified second amended plan of liquidation took effect on May 23, according to the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on April 6.

As previously reported, the company sold substantially all of its assets and satisfied its pre-bankruptcy loan and debtor-in-possession credit agreement obligations.

Under the plan, causes of action will be assigned to a creditor trust, which will administer and liquidate them for the benefit of general unsecured creditors.

Creditors will be treated as follows:

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

• Holders of secured claims will either be paid in full in cash, receive the proceeds from the sale of the collateral securing the claim or receive the collateral;

• Holders of general unsecured claims will receive the net proceeds of the creditor trust assets; and

• Holders of equity interests will receive no distribution.

CEI was formerly Champion Enterprises, Inc., a Troy, Mich.-based producer of manufactured and modular homes, as well as modular buildings for government and commercial applications. The company filed for bankruptcy on Nov. 15, 2009. The Chapter 11 case number is 09-14019.

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