Dakota Plains creditors vote unanimously in favor of liquidation plan

New York, Aug. 2 – Dakota Plains Holdings, Inc. received unanimous support from creditors voting on its plan of liquidation, according to a report filed Wednesday with the U.S. Bankruptcy Court for the District of Minnesota.

The plan confirmation hearing is scheduled for Aug. 3.

The single pre-petition lender with a claim of $7.73 million voted in favor, the single holder of the Wells Fargo entities with a $15 million claim voted in favor, and the two holders of general unsecured claims with a total of $55.26 million voted in favor.

Priority non-tax claims were deemed to reject the plan as were holders of equity interests.

The disclosure statement for the plan was approved on June 12.

As previously reported, the plan provides for the liquidation of the company’s assets remaining after its sale transaction, which consist primarily of causes of action, and the distribution of the net proceeds of that liquidation to creditors.

A trust will be established to liquidate the assets.

Administrative claims, priority tax claims and priority non-tax claims will be paid in full in cash.

Holders of pre-bankruptcy lender secured claims, in addition to previously received sale proceeds, will retain their liens and receive all the cash subject to the lien, minus the amount of a liquidating trust carve-out.

In addition, the lenders will receive either the proceeds of liquidation of all other estate assets or the return of their collateral.

Holders of a Wells Fargo entities claims will have a $15 million general unsecured claim.

Holders of unsecured claims will receive a share of beneficial interests in the liquidating trust.

Equity interests will be cancelled.

Dakota Plains, a midstream energy company based in Wayzata, Minn., filed for bankruptcy on Dec. 20, 2016 under Chapter 11 case number 16-43711.

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