Liberty Medical Supply plan of liquidation effective Sept. 18

By Caroline Salls

Pittsburgh, Sept. 18 – Liberty Medical Supply, Inc.’s amended Chapter 11 plan of liquidation took effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the plan was confirmed on July 15.

In November 2014, the company closed a sale of substantially all its assets to Liberty Medical, LLC for $32.5 million in cash and the assumption of up to $35.96 million in liabilities.

All proceeds from company asset sales and settlements will be placed into a liquidating trust to allow for creditor distributions.

Treatment of creditors includes the following:

• Secured claims will either be paid in full in cash, or holders will receive the proceeds from 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 payment in cash of an allowed claim plus interest at a yearly rate of 1½% until the claim is paid in full;

• Holders of Medco Health Solutions, Inc. claims will receive a share of liquidating trust assets after all other claims have been paid in full; 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 Feb. 15, 2013. The Chapter 11 case number is 13-10262.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.