USA Discounters emerges; plan of liquidation effective as of March 6

By Caroline Salls

Pittsburgh, March 6 – USA Discounters, Ltd.’s plan of liquidation took effect on March 6, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Feb. 27.

As previously reported, the company said its remaining assets are largely limited to receivables, cash and trust avoidance actions.

The plan calls for the appointment of a plan administrator and a general unsecured claims trustee who will administer and liquidate all remaining property of the USA Discounters debtors and their estates.

USA Discounters will be dissolved and wound up under the plan.

Treatment of creditors will include the following:

• Administrative, priority tax, priority and other secured claims will be paid in full;

• Holders of pre-bankruptcy credit document claims will receive monthly distributions of any available cash until paid in full or until available cash runs out;

• Holders of general unsecured claims against USA Discounters will receive a share of class A general unsecured claims trust interests;

• Holders of general unsecured claims against the holding company will receive a share of available cash;

• Holders of general unsecured claims against USA Discounters Credit LLC will receive a share of available cash;

• Holders of general unsecured claims against USA Discounters who opt out of specified releases will receive a share of class B general unsecured claims trust interests;

• Holders of subordinated claims will receive no distribution; and

• All equity interests will be canceled, and holders will receive no distribution.

USA Discounters, a Norfolk, Va.-based retailer, filed for bankruptcy on Aug. 25, 2015. Its Chapter 11 case number is 15-11755.

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