Renew Energy unsecured creditors committee files liquidation plan

By Caroline Salls

Pittsburgh, March 24 - Renew Energy LLC's official committee of unsecured creditors filed a plan of liquidation for the company's bankruptcy case Wednesday with the U.S. Bankruptcy Court for the Western District of Wisconsin.

The committee's plan calls for establishment of a liquidating trust and the distribution of the remaining assets not distributed as part of Renew's asset sale.

Treatment of creditors would include:

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

• Holders of secured bankers' bank claims will recover 50% in net sale proceeds under an auction consent and plan agreement and the sale agreement. Bankers' Bank will also retain a lien on some assets not sold;

• Holders of secured bond claims will recover 16.9% through amounts remaining in segregated bond accounts established with bond proceeds, all net sale proceeds payments already received and, to the extent not yet received, 10% of the net sale proceeds;

• Holders of unsecured claims will receive a share of liquidation proceeds available for distribution; and

• Interest holders will receive no distribution.

As previously reported, Renew Energy filed its original plan in May 2009 that called for a sale to a non-lender buyer or a sale to a lender via credit bid.

The committee said the company eventually conducted a different asset sale and withdrew the original sale motion.

Renew Energy, a Jefferson, Wis., ethanol producer, filed for bankruptcy on Jan. 30, 2009. Its Chapter 11 case number is 09-19491.

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