Former iGPS second amended joint plan of liquidation is confirmed

By Jim Witters

Wilmington, Del., Nov. 14 - The second amended joint plan of liquidation for Pallet Co. LLC, formerly iGPS Co. LLC, was confirmed during a Nov. 14 hearing in the U.S. Bankruptcy Court for the District of Delaware.

Debtors' attorney John K. Cunningham said all four objections to the plan were resolved before the hearing, and the plan, as presented, was fully consensual.

As previousy reported, a joint venture formed by Balmoral Funds, One Equity Partners, some of their affiliates and Jeff and Robert Liebesman obtained substantially all of the iGPS assets in a transaction that closed in August.

The venture 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.

The liquidation plan disclosure statement was approved by the court on Oct. 1.

Cunningham said the plan was accepted by 99.7% in number and 99.9% in amount among voting creditors.

The confirmed 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.

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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