Former Lee Steel plan of liquidation confirmed, disclosure approved

By Caroline Salls

Pittsburgh, Nov. 24 – LSC Liquidation, Inc., formerly Lee Steel Corp., obtained confirmation of its plan of liquidation, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Eastern District of Michigan.

Tuesday’s order also approved the disclosure statement related to the plan.

As previously reported, a liquidating trust will be established under the plan to resolve disputed claims, prosecute estate litigation and make plan distributions.

Treatment of creditors will include the following:

• Administrative expense claims will be paid in full in cash;

• Priority tax claims and other priority claims will be paid in full;

• As the only holder of a secured claim, the Huntington National Bank will be deemed to waive the remaining amount due on its secured claim and be deemed to waive and release any other claims against the Lee Steel debtors;

• Holders of general unsecured claims will receive a share of liquidating trust assets remaining after administration of the trust. This distribution will come following resolution of all disputed claims, causes of action and estate litigation and other estate claims; and

• Holders of equity interests will receive no distribution under the plan.

Lee Steel is a Novi, Mich., steel maker that filed for bankruptcy on April 13, 2015. The Chapter 11 case number is 15-45784.

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