Cosmoledo receives confirmation of Chapter 11 plan of liquidation

By Sarah Lizee

Olympia, Wash., Sept. 3 – Cosmoledo, LLC’s Chapter 11 plan of liquidation was confirmed by the U.S. Bankruptcy Court for the Southern District of New York, according to an order filed Friday.

The plan provides for the liquidation of any remaining assets and distribution on and after the effective date. All assets will be transferred to a liquidation trust, and the liquidation trustee will establish reserves and make distributions under the plan, among other things.

Administrative and priority claims will be paid in full.

Under the plan, holders of secured claims will receive payment in full of the unpaid amount of their claims.

Holders of priority claims will be paid in full out of available cash after payment of all administrative and priority claims.

Holders of PPP eligible claims will receive a pro rata distribution of trust units equal to the pro rata distribution of remaining cash, plus 20% of the net PPP cash balance after payment of all class 1 claims, administrative claims, priority tax claims, class 2 claims and the expenses of the liquidation trust.

Holders of general unsecured will receive a pro rata distribution of trust units equal to the pro rata distribution of remaining cash, less 20% of the net PPP cash balance after payment of all class 1 claims, administrative claims, priority tax claims, class 2 claims and the expenses of the liquidation trust.

Intercompany claims, intercompany interests and interests in Cosmoledo will be discharged, released an extinguished with no distribution.

New York-based Cosmoledo operates fine casual dining restaurants. It filed Chapter 11 bankruptcy on Sept. 10, 2020 under case number 20-12117.

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