Zacky Farms liquidation in effect as of Feb. 28; claims deadlines set

By Kali Hays

New York, March 3 - ZF In Liquidation, LLC's amended plan of liquidation went into effect Feb. 28, according to a notice filed Friday with the U.S. Bankruptcy Court for the Eastern District of California.

ZF In Liquidation was formerly Zacky Farms, LLC.

The notice also set deadlines of March 31 for administrative claims, professional fees claims and rejection claims.

As previously reported, the funds from the company's liquidation, after payment of plan expenses, will be made available for distribution to holders of allowed claims and interests.

ZF In Liquidation said a plan administrator will administrate the debtor for the purpose of liquidating and monetizing estate assets, which consist primarily of a $6.4 million 503(b)(9) note and a $3.5 million creditor note.

Treatment of creditors will include the following:

• Administrative claims and priority claims already have been or will be paid in full;

• The major secured claims filed against Zacky Farms were resolved under a debtor-in-possession lender settlement;

• Holders of 503(b)(9) claims will be paid from 503(b)(9) note proceeds;

• General unsecured creditors will be paid from estate assets to the extent net available cash exists after payment or reserve for all senior claims; and

• Members will retain their interests, but the company's operating agreement will be amended to eliminate any power or right to effect management of Zacky Farms after confirmation, except to the extent authorized by other plan provisions.

No distributions will be made to members until all other allowed claims and/or obligations are fully satisfied.

As of Feb. 28, parties with current or prospective claims are prohibited from taking any legal action against the company, the notice stated.

Zacky Farms is a Fresno, Calif.-based poultry producer. The company filed for bankruptcy on Oct. 9, 2012 under Chapter 11 case number 12-37961.

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