RNI Wind Down plan of liquidation takes effect

By Jennifer Lanning Drey

Eugene, Ore., Sept. 26 - RNI Wind Down Corp. emerged from bankruptcy on Sept. 25, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company will be liquidated and convert all its assets to cash for distribution to creditors.

Under the plan of liquidation, holders of administrative claims, priority claims, priority tax claims, secured claims and general unsecured claims will be paid in full.

Personal injury claimants will be covered by insurance, and any portion of the claims not covered by insurance will be considered general unsecured claims.

Bondholder claimants will be paid in full plus post-bankruptcy interest, including the payment of the bond trustee's fees and expenses.

Indemnification claimants will be paid in full, except that the claims of settling officers and directors will be limited to available directors and officers insurance and the indemnification class reserve.

Equity interests in Riverstone Networks will be canceled but will be given effect to calculate an amount of cash distribution.

Holders of equity interests in all other debtors will receive no distribution.

RNI, formerly Riverstone Networks, Inc., a Santa Clara, Calif., provider of carrier ethernet routers, filed for bankruptcy on Feb. 7, 2006. Its Chapter 11 case number is 06-10110.

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