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Otter Tail Ag Enterprises: Bankruptcy court confirms liquidation plan
By Lisa Kerner
Charlotte, N.C., Aug. 12 - Otter Tail Ag Enterprises, LLC's plan of liquidation, filed in April, was confirmed, according to a Friday filing with the U.S. Bankruptcy Court for the District of Minnesota.
The company's disclosure statement was approved in June.
As previously reported, the company originally filed a plan of reorganization in 2010 that was contingent on Otter Tail's raising $12 million of new equity, which it failed to do.
As a result, Otter Tail sold substantially all of its fixed assets for $60.11 million on March 24.
After payment of lender claims and sale expenses and a settlement payment, the company said it would have $2.5 million remaining to fund the liquidation plan.
Treatment of creditors will include:
• Holders of administrative expense claims, professional claims and priority tax claims will be paid in full;
• Holders of general unsecured claims will receive a share of liquidation proceeds; and
• Equity interests will be cancelled, and holders will receive no distribution.
Otter Tail, a Fergus Falls, Minn., ethanol company, filed for bankruptcy on Oct. 30, 2009. Its Chapter 11 case number is 09-61250.
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