MediCor files plan of liquidation

By Caroline Salls

Pittsburgh, Dec. 30 - MediCor Ltd. filed its plan of liquidation and related disclosure statement Monday with the U.S. Bankruptcy Court for the District of Delaware.

The plan distributes the proceeds from the company's asset sale to creditors.

Specifically, MediCor said its pre-bankruptcy senior lenders will receive the distributable plan cash in exchange for their release of $57 million of debt owed by the company, as well as a share of litigation proceeds in exchange for the release of pre-bankruptcy deficiency claims.

Under an agreement with the senior lenders and the company's official committee of unsecured creditors, general unsecured creditors will receive $700,000 in cash and a share of litigation proceeds.

After the plan is confirmed, the company will liquidate any remaining assets, make plan distributions, wind up its affairs and be dissolved.

Treatment of creditors will include:

• Holders of $350 in priority tax claims, $500,000 in administrative expense claims and $210,000 in priority tax claims will be paid in full;

• Holders of $57.07 million in senior lender secured claims will receive distributable cash;

• Holders of senior lender deficiency claims will receive a share of litigation proceeds;

• Holders of $4 million to $45 million in general unsecured claims will receive the general unsecured cash payment and a share of litigation proceeds; and

• Holders of inter-debtor claims, non-debtor subsidiary claims and equity interests will receive no distribution.

The disclosure statement hearing is scheduled for Jan. 29.

MediCor, a North Las Vegas, Nev., health care company that makes and sells products for the aesthetic, plastic and reconstructive surgery and dermatology markets, filed for bankruptcy on June 29, 2007. Its Chapter 11 case number is 07-10877.

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