Guaranty Financial second amended liquidation plan effective May 13

By Caroline Salls

Pittsburgh, May 13 - Guaranty Financial Group Inc.'s plan of liquidation took effect May 13, according to a filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The plan was confirmed on May 11.

As previously reported, the plan calls for the liquidation of the company's remaining assets and the distribution of assets to creditors.

All estate assets that remain after satisfaction of administrative, priority tax, secured and Federal Deposit Insurance Corp. receiver claims will be distributed to the holders of general unsecured claims through a liquidation trust.

According to Wednesday's confirmation order, Dennis Faulkner has been appointed special liquidation agent.

Creditors will be treated as follows:

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

• The FDIC receiver will receive cash, plus 100% of tax refunds and insurance premium refund amounts. The receiver will also have the right to prosecute directors and officers claims and other causes of action;

• Holders of general unsecured claims will receive a beneficial interest in the liquidating trust; and

• Interest holders will receive no distribution.

Guaranty Financial, a Dallas-based unitary thrift holding company, filed for bankruptcy on Aug. 27, 2009. Its Chapter 11 case number is 09-35582.

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