Indianapolis Downs: Joint plan of reorganization effective April 11

By Jim Witters

Wilmington, Del., April 11 - Indianapolis Downs, LLC's modified second amended joint plan of reorganization became effective April 11, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, judge Brendan L. Shannon issued a Jan. 31 opinion confirming the plan. Shannon entered a formal confirmation order on March 20.

Plan confirmation was predicated on a sale of substantially all of the debtors' assets.

On Oct. 31, the court approved a $500,000,001 sale to Centaur LLC.

Creditor treatment

Under the confirmed plan of reorganization, treatment of creditors includes the following:

• Each holder of a pre-bankruptcy second-priority note claim and second-priority guarantee claim will receive a share of all of a new second-lien term loan or all of the proceeds from alternative second-lien financing, as well as 95% of a new unsecured PIK term loan and 95% of new series A warrants;

• Each holder of a pre-bankruptcy third-priority note claim and a third-priority guarantee claim will receive 5% of the new unsecured PIK term loan, 5% of the new series A warrants and 100% of new series B warrants;

• All debtor-in-possession financing claims, administrative claims and priority tax claims will be paid in full;

• Other priority claims and other secured claims will be unimpaired; and

• Holders of general unsecured claims and interests will receive no distribution.

Indianapolis Downs, a Shelbyville, Ind., racetrack, off-track betting and gaming company, filed for bankruptcy on April 7, 2011. Its Chapter 11 case number is 11-11046.

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