IPS Worldwide liquidation plan votes reported; trustee seeks cramdown

By Caroline Salls

Pittsburgh, Jan. 30 – IPS Worldwide, LLC’s amended plan of liquidation was unanimously accepted by voting holders of general unsecured claims, according to a ballot report filed Wednesday with the U.S. Bankruptcy Court for the Middle District of Florida.

Specifically, all nine holders of $64.09 million in general unsecured claims voted to accept the plan.

According to the report, no holders of equity interests voted on the plan.

Also, IPS Chapter 11 trustee Alex D. Moglia asked the court to confirm the plan, despite the deemed non-acceptance of the equity interest holders.

Moglia said “it is expected that the court will find that all requirements for confirmation have been met except the requirement that all classes of interests have accepted the plan.”

Under the Bankruptcy Code’s “cramdown” provision, the trustee said the court must confirm the plan despite the objection of an impaired class or classes when all other requirements for confirmation of a liquidation plan are met, “so long as the plan does not discriminate unfairly and is fair and equitable with respect to the impaired classes.”

Under the plan, equity interests will be extinguished, and no holder of a junior interest will retain their interests. As a result, Moglia said the proposed plan treatment satisfies Bankruptcy Code requirements for confirmation.

The plan confirmation hearing is scheduled for Feb. 3.

IPS Worldwide is an Ormond Beach, Fla.-based freight payment company. The company filed bankruptcy on Jan. 25, 2019 under Chapter 11 case number 19-00511.

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