NewAge’s combined plan, statement hearing moved to Feb. 24

By Sarah Lizee

Olympia, Wash., Feb. 8 – NewAge, Inc.’s combined hearing on confirmation of its third amended Chapter 11 plan of liquidation and final approval of its disclosure statement was moved to Feb. 24 from Feb. 8, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

According to the plan, the assets that will be used for distributions to creditors consist of a liquidation trust with an initial principal amount of at least $1.5 million; causes of action against some of the debtors’ officers and directors in the Kwikclick lawsuit, which are being assigned to the liquidation trust, and of which there may or may not be up to $35 million of director & officer insurance coverage available; all other causes of action; and any remaining cash on hand.

The debtors anticipate that there will be about $1.5 million of net distributable assets to the liquidation trust, in addition to claim recoveries, which amounts are currently undetermined.

Under the plan, other secured claims are unimpaired.

Holders of class 2 general unsecured claims (estimated at $279,142 against NewAge, $14,808,711 against Morinda and $942,263 against Ariix) will receive their pro rata share of an interest in the liquidation trust.

Holders of general unsecured claims can opt to reduce their claims to the convenience claim threshold in order to participate in class 3 below, but by doing so they will be barred and will have waived their right to receive a distribution for the waived amount.

Holders of class 3 general unsecured claims (the administrative convenience class with a $249,710 total of claims from the three cases) will receive a distribution equal to 50% of their allowed claims unless the amount deposited into the GUC administrative convenience account is not enough to allow for this percentage distribution, in which case holders will receive their pro rata share, which will be less than 50% of their claims.

Holders of subordinated claims will receive their pro rata share of an interest in the liquidation trust assets that is subordinated to the holders of class 2 and will only receive a distribution after class 2 is paid in full.

Intercompany claims and interests will be canceled.

Holders of equity interests will receive a pro rata share of an interest in the liquidation trust that is subordinated to class 2 and subordinated claims, and will only receive a distribution until those classes are paid in full.

The Midvale, Utah-based direct-to-consumer organic and healthy products company filed bankruptcy on Aug. 30 under Chapter 11 case number 22-10819.

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