Former Schutt Sports' plan of liquidation takes effect as of May 9

By Caroline Salls

Pittsburgh, June 9 - SSI Liquidating, Inc.'s plan of liquidation took effect on Thursday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on May 10.

As previously reported, under the plan, the company will wind down its affairs and distribute its remaining assets.

A liquidating trust will be established to prosecute causes of action, resolve claim objections and make creditor distributions.

Treatment of creditors will include:

• Holders of administrative expense claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• Holders of secured claims will receive one of the treatments specified in section 1124 of the Bankruptcy Code or another treatment agreed to in writing by the company, committee or liquidating trustee;

• Holders of general unsecured claims will receive a share of liquidating trust assets remaining after payment in full of administrative, priority, secured and convenience claims;

• Holders of critical trade vendor claims will receive a share of liquidating trust assets remaining after payment in full of administrative, priority, secured and convenience claims, provided, however, that they will not be paid until holders of general unsecured claims receive an equal recovery percentage;

• Holders of unsecured convenience claims will recover 50% in cash;

• Holders of intercompany claims will receive no distribution; and

• Interest holders will receive a share of liquidating trust assets after all other claims have been paid in full.

SSI Liquidating was formerly Schutt Sports, Inc., a Litchfield, Ill.-based sports equipment manufacturer. The company filed for bankruptcy on Sept. 6, 2010. The Chapter 11 case number is 10-12795.

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