Progrexion plan hearing changed to status conference on Nov. 2

By Sarah Lizee

Olympia, Wash., Oct. 26 – PGX Holdings, Inc., which does business as Progrexion, had the Oct. 27 hearing on confirmation of its Chapter 11 plan changed to a status conference scheduled for Nov. 2, according to a notice filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

In a memo filed Wednesday, the company urged the court to confirm the plan as soon as possible, saying the administrative run rate in the Chapter 11 cases is significantly higher before confirmation than it will be after.

As background, the company filed Chapter 11 to pursue a value-maximizing set of sale transactions that would allow the business to survive as a going concern.

“Five months from the petition date, the debtors stand poised to confirm a Chapter 11 plan that achieves just that,” the company told the court, noting that the going-concern sales have been approved and have closed, and the plan has the support of the whole capital structure, including the official committee of unsecured creditors, trade creditors, and other unsecured creditors.

A single plaintiff acting on behalf of herself and a class of plaintiffs that will be subsequently certified in a WARN action, is the only party objecting to the plan.

The WARN plaintiff holds no allowed claims and herself asserts only $10,625 in priority claims, the company said.

“Contrary to the WARN plaintiff’s assertions, the plan provides for payment in full in cash of all allowed priority claims, including any claims arising from the WARN action that are ultimately allowed as priority claims,” the company said.

The company said it modified the plan to clarify that point.

“This leaves the WARN plaintiff’s only real objection: that the plan is not feasible under section 1129(a)(11) of the bankruptcy code because she (and many others) will attempt to later prove that they have around $10.5 million in priority claims,” Progrexion said.

“But the debtors need only show a reasonable assurance of success with respect to implementing the terms of the plan in order to demonstrate that the plan is feasible.”

Progrexion is a provider of consumer credit repair services based in Salt Lake City. The company filed bankruptcy on June 4 under Chapter 11 case number 23-10718.

© 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.