PPI Holdings' plan of liquidation confirmed, liquidating trustee named

By Jim Witters

Wilmington, Del., Oct. 31 - PPI Holdings Inc.'s plan of liquidation received confirmation, and a liquidating trustee was named, according to documents filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Under the plan, the company's assets will be transferred to a liquidating trust, which will liquidate the assets, prosecute or settle causes of action, review claims and distribute proceeds to creditors.

Edward T. Gavin was approved as liquidating trustee.

Treatment of creditors

Treatment of creditors under the plan will include:

• Holders of administrative claims, professional fee claims, priority tax claims and priority unsecured claims will be paid in full in cash;

• Holders of 503(b)(9) claims will receive a share of $225,000, 60% of all distributable net proceeds except for net proceeds of claims other than avoidance actions and 25% of net proceeds of claims other than avoidance actions until they are paid in full;

• Holders of other secured claims will either be paid in full in cash or receive the collateral securing the claim, at the liquidating trustee's option;

• Holders of convenience claims will recover 3.5% in cash;

• Holders of general unsecured claims will receive a share of $150,000 from a general unsecured reserve account, 40% of all distributable net proceeds except for net proceeds of claims other than avoidance actions, 75% of net proceeds of claims other than avoidance actions and any distributable net proceeds remaining after 503(b)(9) claims are paid in full;

• Holders of lender deficiency claims will receive cash equal to their share of the funds remaining in the liquidating trust after other creditors and liquidating trust expenses have been paid in full; and

• Holders of interests and inter-company claims will receive no distribution.

PPI, a Rochester Hills, Mich., designer and manufacturer of high-precision metal components and subassemblies, filed for bankruptcy on Dec. 12, 2008. Its Chapter 11 case number is 08-13289.

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