Global Motorsport Group files plan of liquidation following sale

By Caroline Salls

Pittsburgh, Aug. 3 - Global Motorsport Group, Inc. filed its plan of liquidation Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company received court approval of the $16 million sale of substantially all of its assets in February 2008.

A general unsecured trust will be established under the plan, which will be funded with $425,000 in cash, funds as needed from an agent contribution and proceeds from avoidance actions and other causes of action.

Treatment of creditors will include:

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

• Holders of lender group claims will retain all distributions made before the plan effective date in full satisfaction of their claims;

• Holders of other secured claims will receive either the net proceeds from the liquidation of the assets to which they hold a lien or the return of the collateral securing their claims;

• Holders of general unsecured claims will receive a share of general unsecured creditor fund assets; and

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

Global Motorsport, a Morgan Hill, Calif.-based wholesale distributor of aftermarket motorcycle parts and accessories, filed for bankruptcy on Jan. 31, 2008. Its Chapter 11 case number is 08-10192.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.