Medley Chapter 11 plan accepted by both voting creditor classes

By Sarah Lizee

Olympia, Wash., Sept. 29 – Medley LLC’s Chapter 11 plan of reorganization was accepted by both classes of creditors entitled to vote, according to a tabulation summary filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, holders of 537, or 87.71% in number, of $19.8 million, or 93.29% in amount, of notes claims voted to reject the plan, while 6 holders, or 12.29% in number, of $1.42 million, or 6.71% in amount, voted to reject the plan.

Meanwhile, all four voting holders of $9,583.49 of general unsecured claims voted to accept the plan.

The hearing on final approval of the statement and confirmation of the plan is scheduled for Oct. 5.

As previously reported, the company had withdrawn its original plan and statement in mid-May.

The plan is premised on maximizing the remaining value of the debtors’ assets, the company said.

Specifically, Medley has three primary assets, including cash on hand, income stream generated from the remaining company contracts, less the cost of operations, and causes of action, including potential claims against certain current and former insiders.

A liquidating trust will be established for the benefit of creditors holding allowed claims.

Under the plan, holders of administrative claims will receive payment in full in cash.

The liquidating trustee will pay professional claims in cash in the amount the bankruptcy court allows.

Holders of priority tax claims and other priority claims will be paid in full.

Holders of secured claims will receive payment in full in cash, the collateral securing their claims, reinstatement of their claims or other treatment leaving their claims unimpaired.

Holders of notes claims and general unsecured claims will receive a pro rata share of the unsecured claims pool.

Intercompany claims will be canceled with no distribution.

Interests will be retained, but the debtor will transfer a 1% membership interest in the debtor to the liquidating trust.

New York-based Medley is an alternative asset management firm offering yield solutions to retail and institutional investors. The company filed bankruptcy on March 7 under Chapter 11 case number 21-10526.

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