Former Monitor Group gets OK for allocation deal with Caltius Partners

By Jim Witters

Wilmington, Del., Aug. 2 - MCG LP, formerly Monitor Co. Group LP, received approval for an agreement with Caltius Partners IV, LP that clears the way for conversion of the case to Chapter 7, according to documents filed Aug. 2 with the U.S. Bankruptcy Court for the District of Delaware.

Under the stipulated terms:

• Caltius agreed to a wind-down budget using the cash in the estate following the sale;

• The wind-down will be jointly overseen by the official committee of unsecured creditors and Caltius;

• After payment of the debtor-in-possession financing facility, funding of the wind-down budget, payment of administrative expenses and payment of the Bank of America credit facility, the remaining cash proceeds from the sale and liquidation of assets and avoidance actions will be paid to the unsecured creditors and Caltius.

Of the estate proceeds, Caltius will receive 85% and the unsecured creditors will receive 15%; and

• Caltius will receive distributions from the net proceeds of all recoveries - other than estate proceeds in the Chapter 11 cases - on account of its deficiency claim.

Norman Pernick, attorney for the creditors committee, said at an earlier hearing that the Caltius allocation issues were delaying the wind-down.

The debtors, Caltius and the committee joined in a July 15 motion to convert the case to Chapter 7.

A hearing on the conversion is scheduled for Aug. 5.

Monitor, a Cambridge, Mass.-based strategy consulting firm, filed for bankruptcy on Nov. 7, 2012. Its Chapter 11 case number is 12-13042.

© 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.