Orius granted court approval of plan of liquidation, disclosure statement

By Jennifer Lanning Drey

Portland, Ore., Nov. 16 - Orius Corp. obtained court approval of its plan of liquidation and related disclosure statement on Thursday from the U.S. Bankruptcy Court for the Northern District of Illinois, according to an attorney.

As previously reported, Orius' sale of substantially all of its assets closed on March 1, 2006, and the net proceeds were distributed to the company's lenders.

The remainder of the company's cash and other assets will be distributed under the plan from a liquidation trust.

Treatment of creditors under the plan will include:

• Holders of secured lender claims will receive their share of excess cash and their share of net proceeds from all trust assets;

• Holders of miscellaneous secured claims will receive turnover of the property securing the claims;

• Holders of general unsecured claims will receive their share of plan trust proceeds.

General unsecured proceeds include $75,000, the first $250,000 of total net proceeds from avoidance actions, 50% of the total net proceeds between $250,000 and $550,000 from avoidance actions, 20% of the total net proceeds in excess of $550,000 from avoidance actions, 10% of the total net proceeds from miscellaneous causes of action, 50% of total net proceeds from miscellaneous accounts receivable and 7.5% of total net proceeds in excess of $3.5 million from the company's Santa Rosa litigation;

• Holders of lender deficiency claims will receive their share of plan trust proceeds, including 50% of the total net proceeds between $250,000 and $550,000 from avoidance actions and 80% of the total net proceeds in excess of $550,000 from avoidance actions; and

• Holders of intercompany claims, Orius interests and subsidiary interests will receive no distribution under the plan.

Orius, a West Palm Beach, Fla., provider of construction, deployment and maintenance services to the telecommunications, broadband, gas and electric utilities and government industries, filed for bankruptcy on Dec. 12, 2005. Its Chapter 11 case number is 05-63876.

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