Aceto second modified plan of liquidation confirmed by court by court

By Caroline Salls

Pittsburgh, Sept. 19 – Aceto Corp.’s second modified plan of liquidation was confirmed Wednesday by the U.S. Bankruptcy Court for the District of New Jersey.

According to the disclosure statement, plan distributions and the plan administrator’s post-effective date operations will be funded using the Aceto debtors’ cash on hand and asset sale and litigation proceeds.

Under the plan, administrative claims, priority tax claims and other priority claims will be paid in full in cash.

Holders of other secured claims will either be paid in full in cash, receive the net proceeds from the sale of the collateral securing the claim or receive the collateral.

Holders of general unsecured claims will receive a share of net distributable assets in the applicable debtor up to the full amount of the claim.

Holders of subordinated claims will receive no distribution, provided, however, that if holders of general unsecured claims are paid in full, including interest, and other specified amounts are reserved, these creditors may receive a share of remaining net distributable assets.

Interest holders will receive no distribution under the plan.

Aceto is a Port Washington, N.Y.-based developer, marketer, seller and distributor of human health products, pharmaceutical ingredients and performance chemicals. The company filed bankruptcy on Feb. 19, 2019 under Chapter 11 case number 19-13448.

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