Former iGPS gets disclosure statement OK; confirmation hearing Nov. 14

By Jim Witters

Wilmington, Del., Oct. 1 - Pallet Co. LLC, formerly iGPS Co. LLC, won approval of the disclosure statement for its second amended Chapter 11 joint plan of liquidation during an Oct. 1 hearing in the U.S. Bankruptcy Court for the District of Delaware.

Debtors' attorney John K. Cunningham said the Aug. 1 closing of the asset sale left the estate with $2.5 million in cash and "several million dollars" in a reserve fund designated for payment of administrative claims through the closing date.

A joint venture formed by Balmoral Funds, One Equity Partners, some of their affiliates and Jeff and Robert Liebesman paid $2.5 million cash, waived more than $150 million of senior secured claims and assumed certain prepetition payables and employee liabilities, the debtor-in-possession financing claims and some administrative and priority claims.

Cunningham said the business is "humming," and the new owners rehired "virtually all" of the iGPS employees.

Plan details

The proposed plan provides for the formation of a liquidation trust, which will liquidate the remaining assets and distribute the proceeds to creditors. The liquidation trustee will then wind down the estate.

The plan also calls for

• Holders of allowed priority claims and allowed non-lender secured claims to be paid in full;

• Holders of allowed unsecured claims to receive a proportional share of the available proceeds; and

• Holders of allowed equity interests to receive no recovery.

Cunningham said the decision on whether to pay creditors immediately or stretch payments over five years will be made later.

The plan confirmation hearing is scheduled for 2 p.m. ET on Nov. 14.

iGPS, an Orlando-based operator and owner of a global pallet rental pool with embedded RFID tags, filed for bankruptcy on June 4 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 13-11459.

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