Orchids Paper Products statement OK’d; plan hearing set for Dec. 11

By Caroline Salls

Pittsburgh, Oct. 18 – OPP Liquidating Co., Inc., formerly Orchids Paper Products Co., obtained interim court approval of the disclosure statement for its second amended plan of liquidation, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Dec. 11.

Under the plan, liquidating trust assets will be comprised of the $825,000 Orchids investment settlement payment, estate claims and liquidating trust funding.

The liquidating trust assets will be the source of distributions to holders of general unsecured claims and, if applicable, holders of equity interests.

Holders of first-lien claims, other secured claims and priority claims are given 100% estimated recovery.

Holders of general unsecured claims will receive a pro rata distribution from any remaining amounts of the investment settlement payment.

Holders of equity interests will receive a distribution from any remaining liquidating trust assets or the proceeds thereof only after all allowed general unsecured claims are paid in full.

Orchids, a Brentwood, Tenn.-based maker of consumer tissue products, filed for bankruptcy on April 1, 2019. The Chapter 11 case number is 19-10729.

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