Quirky files Chapter 11 liquidation plan; disclosure hearing June 27

By Caroline Salls

Pittsburgh, May 26 – Quirky, Inc. filed its plan of liquidation and related disclosure statement Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The company said it has liquidated substantially all of its assets and no longer maintains active business operations.

As part of the compromises contained in the plan, funds will be set aside for the benefit of unsecured creditors and a plan administrator will be appointed to review, analyze and object to unsecured claims, or, as appropriate, continue the prosecution of the company’s objections.

The administrator will also evaluate and potentially prosecute retained causes of action and make distributions to creditors.

The Quirky debtors’ estates will be wound down after the plan effective date.

For its secured claim, Comerica will receive cash distributions equal to a minimum distribution threshold, plus 25% of a Wink sale-reserve fund, any undistributed portions of a priority claims reserve after priority tax and priority non-tax claims are paid in full, and any undistributed portions of an administrative expense reserve after those expenses are paid in full.

When Comerica’s distributions reach $10.3 million, it will receive no other distributions, other than from the Wink sale-reserve fund.

Holders of other secured claims will receive the net proceeds from the sale of the collateral securing the claims.

Priority claims will be paid in full in cash.

Holders of general unsecured claims will receive a share of any remaining portion of a plan settlement fund after non-tax priority claims are paid in full.

Settling noteholders will receive releases in consideration for their agreement to waive any payment on account of their subordinated convertible notes.

Holders of equity interests and intercompany claims will receive no distribution.

The disclosure statement hearing is scheduled for June 27.

Quirky is a New York-based invention startup company. It filed for bankruptcy on Sept. 22, 2015 under the Chapter 11 case number 15-12596.

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