Money Tree trustee and committee's disclosure statement OK'd by court

By Caroline Salls

Pittsburgh, March 5 - Money Tree Inc.'s Chapter 11 trustee and official committee of unsecured creditors received court approval of the disclosure statement for their joint plan of liquidation for the company's case, according to a Tuesday filing with the U.S. Bankruptcy Court for the Middle District of Alabama.

The plan confirmation hearing is scheduled for April 23.

According to the disclosure statement, substantially all of the estates' assets have been sold. The plan calls for the liquidation and conversion to cash of the Money Tree debtors' remaining assets and the distribution of the net proceeds by a liquidating trustee.

The liquidating trustee will liquidate the company's remaining assets. A post-confirmation committee will have an active role in prosecuting lawsuits and managing Money Tree's affairs after its bankruptcy.

In addition, the company said it expects extensive post-confirmation litigation, and the estates are believed to have valuable claims against third parties that may exceed the value of asset sale proceeds.

Treatment of creditors will include the following:

• Administrative claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• Holders of secured claims will receive the collateral securing their liens;

• Holders of convenience claims will recover 15% from available funds after all administrative and priority claims have been paid in full;

• Holders of general unsecured claims will receive a 90% share of available funds after the higher priority claims are paid in full.

If enough funds are available, these creditors could receive a second distribution no later than 14 months after the initial distribution; and

• Equity interests will be cancelled. Interest holders will receive no distribution.

Money Tree, a Bainbridge, Ga., consumer loan company, filed for bankruptcy on Dec. 16, 2011. The Chapter 11 case number is 11-12254.

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