Former Palm Harbor Homes' plan of liquidation confirmed by court

By Jim Witters

Wilmington, Del., Nov. 17 - PHH Liquidation Trust's plan of liquidation was confirmed Thursday during a hearing in U.S. Bankruptcy Court for the District of Delaware.

No one objected to the plan at the hearing.

Effective with the confirmation, the company's name was changed to PPH Co., Inc.

As previously reported, substantially all of Palm Harbor's assets were sold in February to stalking horse bidder Fleetwood Homes Inc., an affiliate of Cavco Industries Inc., for $83.9 million. The sale was approved by the court on March 4.

The liquidation plan calls for the formation of a post-consummation trust to administer the remaining assets.

Creditor treatment

The liquidation plan includes the following treatment of creditors:

• Holders of priority claims will be paid in full in cash;

• Holders of other secured claims will receive either the collateral securing the claim or cash equivalent to the value of the collateral;

• Holders of 3.25% convertible senior notes will receive a pro rata share of a $54.78 million allowed claim, for a recovery ranging from 16.7% to 21%;

• Holders of general unsecured claims - estimated to total $36.4 million to $47.3 million - will receive their pro rata share of the available cash or other consideration, including proceeds of the post-consummation trust assets for a recovery ranging from 16.7% to 21%; and

• Holders of inter-company claims and equity interests receive nothing.

Palm Harbor Homes, a Dallas-based maker of multi-section manufactured and modular homes, filed for bankruptcy on Nov. 29, 2010. The Chapter 11 case number is 10-13850.

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