PQ New York secures confirmation of plan of liquidation

By Sarah Lizee

Olympia, Wash., Sept. 25 – PQ New York, Inc. and its official committee of unsecured creditors’ plan of liquidation was confirmed on Friday, according to an order filed with the U.S. Bankruptcy Court for the District of Delaware.

The disclosure statement was approved on a final basis as well.

As previously reported, the plan calls for the establishment of a liquidating trust through which the trustee will collect the company’s remaining assets, including the proceeds from the sale of substantially all of its assets that closed on June 30, review claims against PQ New York and make distributions in accordance with the plan.

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

Holders of secured claims will receive the collateral securing the claim or cash equal to the full amount of the claim.

Holders of unsecured convenience claims will recover 5% of the amount of their claims, which will be automatically allowed as the lesser of the full amount of the claim and $2,500.

Holders of general unsecured claims will receive a share of any funds remaining in the liquidating trust after payment of all senior claims in full.

Interests will be cancelled, and holders will receive no distributions.

PQ is a New York-based restaurant company that filed for bankruptcy on May 27. The Chapter 11 case number is 20-11266.

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