Liberty Medical Supply files plan to distribute asset sale proceeds

By Caroline Salls

Pittsburgh, Aug. 15 – Liberty Medical Supply, Inc. filed a Chapter 11 plan and related disclosure statement Friday with the U.S. Bankruptcy Court for the District of Delaware.

Once the company’s asset sale closes, the proceeds will be placed into a liquidating trust to fund plan distributions.

Under the plan

• Secured claims will either be paid in full in cash or holders will receive the proceeds of the sale of the corresponding collateral or receive the collateral itself;

• Administrative claims, priority tax claims, non-tax priority claims and U.S. Trustee fee claims will be paid in full;

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

• Holders of equity interests will receive a share of the liquidating trust assets after payment in full in cash of all other allowed claims and payment of post-bankruptcy interest to general unsecured creditors.

Liberty Medical, a Port St. Lucie, Fla.-based health-care products home delivery provider, filed for bankruptcy on Feb. 15, 2013. The Chapter 11 case number is 13-10262.

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