Open Road Films joint liquidation plan deemed effective as of Oct. 7

By Caroline Salls

Pittsburgh, Oct. 8 – The joint plan of liquidation submitted by Open Road Films, LLC and its official committee of unsecured creditors took effect on Monday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Oct. 3.

According to the disclosure statement, the plan incorporates the terms of an agreement and settlement among Open Road, the committee and the company’s pre-bankruptcy lenders regarding the means for distributing the remaining assets of the debtors’ estates and winding-up their affairs.

Under the plan, the lenders will receive the bulk of the estate assets in the form of cash distributions on account of their security interests in the pre-bankruptcy collateral, with the remaining assets, including $5.1 million in cash as of June 12, available for the satisfaction of administrative expenses, priority claims and miscellaneous secured claims, as well as to pay plan expenses.

To the extent distributable estate assets remain after those payments, they will be used to make distributions to holders of general unsecured claims.

Holders of subordinated claims will receive no recovery until all general unsecured claims are paid in full, which is not expected to happen.

Interest holders will receive no distribution.

Open Road is a Los Angeles-based film operation. The company filed bankruptcy on Sept. 6, 2018 under Chapter 11 case number 18-12012.

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