Renovate America files Chapter 11 plan and disclosure statement

By Sarah Lizee

Olympia, Wash., May 21 – Renovate America, Inc. filed a Chapter 11 plan and related disclosure statement on Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan calls for the creation of liquidation trusts, the proceeds of which will be used to fund distributions to creditors.

Under the plan, holders of administrative claims, professional fee claims, priority tax claims and priority claims will be paid in full.

Holders of secured credit facility claims will receive the credit facility collateral or proceeds from the sale of the collateral. If the proceeds of the credit facility collateral are not enough to pay these claims in full in cash, the remaining unpaid portion of the claims will be deemed to be general unsecured claims.

Holders of other secured claims will receive payment in full in cash or the collateral securing their claims.

Holders of homeowner claims will be entitled to pursue their claims in any forum only for the purpose of recovering insurance proceeds, if any, available to satisfy their claims. Unless a holder opts out of such treatment, each holder will be treated as a member of the homeowner convenience class. Each member will be deemed to have an allowed claim for the lesser of the amount asserted in their proof of claim or $10,000. Each member will receive their pro rata share of the homeowner liquidating trust assets. Holders who decide to opt out of the homeowner convenience class will receive the same treatment as general unsecured creditors.

Each holder of a general unsecured claim will receive a pro rata beneficial interest in the RAI liquidating trust assets or PEFI liquidating trust assets, as applicable.

Each holder of an issuer claim will receive their pro rata beneficial interest in the RAI liquidating trust assets.

Each holder of a Thrivepoint claim will receive a pro rata beneficial interest in the RAI liquidating trust assets or PEFI liquidating trust assets, as applicable.

Holders of Loya class action claims will receive a pro rata beneficial interest in the RAI liquidating trust assets.

Holders of other class action claims will be entitled to pursue their claims in any forum only for the purpose of recovering insurance proceeds, if any, available to satisfy their claims. Each designated representative for another class action claim will receive, on behalf of the class, its pro rata share of the other class action liquidating trust assets.

Intercompany claims, section 510(b) claims and interests will be canceled, released and extinguished with no distribution.

Renovate America is a San Diego-based provider of financing solutions for environmentally friendly home improvement projects. The company filed bankruptcy on Dec. 21, 2020 under Chapter 11 case number 20-13172.

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