Legacy parent Connaught files plan of reorganization

By Jennifer Lanning Drey

Eugene, Ore., Sept. 29 -Legacy Estate Group, LLC's parent company, Connaught Capital Partners, LLC, filed a plan of reorganization and related disclosure statement Friday with the U.S. Bankruptcy Court for the Northern District of California.

The plan provides for the distributions of the cash Connaught will receive through Legacy's plan of reorganization.

Under the plan, the reorganized company will liquidate its remaining assets and use the cash proceeds as additional distributions to creditors.

All available cash will be used to pay allowed claims, and any remaining cash will be distributed to the equity security holders of Connaught.

Plan creditor treatment

According to the disclosure statement, treatment of creditors will include:

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

• Holders of priority claims will also be paid in full in cash;

• Holders of secured claims will recover 100% through cash or return of collateral;

• Holders of general unsecured claims will be paid their share from the remaining available cash. If the holders of these claims are paid in full, they will also receive interest from the company's Chapter 11 filing date through the date of payment. A total of $18.14 million of claims are listed in this class although the company believes the total will be reduced to $6 million after adjudication of disputed claims;

• Holders of convertible notes will be treated as holders of unsecured claims for interest and unit holders for the principal; and

• Unit holders with allowed interests will receive their share of the remaining available cash only after allowed administrative claims, allowed tax claims, allowed secured claims and unsecured claims are paid in full.

Legacy, a St. Helena, Calif., subsidiary of Connaught Capital Partners LLC, filed for bankruptcy on Nov. 18, 2005. Legacy's Chapter 11 case number is 05-14659

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