Unipharma gets court confirmation of Chapter 11 plan of liquidation

By Sarah Lizee

Olympia, Wash., March 19 – Unipharma, LLC received confirmation of its Chapter 11 plan of liquidation, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Florida.

The plan provides for the appointment of a plan administrator to control and effectuate the claims reconciliation process, make distributions to holders of allowed claims and direct the wind-down, liquidation, sale or abandoning of the remaining assets of the debtors, among other things.

Under the plan, holders of other secured claims will receive payment in full in cash or receive the collateral securing their claims.

Holders of other priority claims will receive cash in full.

Holders of NHTV lender secured claims will receive as a carve-out from the debtor-in-possession collateral, its share of liquidating trust interests and a right to receive liquidating trust amount of recovery proceeds in line with the recovery waterfall.

Holders of pre-petition unsecured subordinated notes claims will receive, as a carve-out from the DIP collateral and the pre-petition collateral, an amount of recovery proceeds in line with the recovery waterfall, and subject to a subordination agreement.

Holders of general unsecured claims will receive their share of a general unsecured claim cash recovery, and their share of liquidating trust interests and a right to receive liquidating trust amount of recovery proceeds in line with the liquidating trust proceeds recovery waterfall.

The general unsecured claim cash recovery means a cash distribution, funded in part by the $1 million NHTV class 5 claims pool and by the first $120,000 of the unused UCC carve-out amount (the top-up), to holders of general unsecured claims equal to not greater than the lesser of (a) 20% of a holder’s allowed class 5 claims and allowed class 6 claims and each holder of an allowed class 5 claim’s and an allowed class 6 claim’s pro rata share of $500,000 plus the top-up, if applicable.

Holders of PPP loan claims will receive, as a carve-out from the DIP collateral and pre-petition collateral, their share of the general unsecured claim cash recovery, and their share of liquidating trust interests and a right to receive liquidating trust amount of recovery proceeds in line with the liquidating trust proceeds recovery waterfall.

Holders of intercompany claims and other subordinated claims will not receive any distribution.

Only in the event that all allowed claims have been satisfied in full, holders of existing Tamarac and Unipharma equity interests may receive their amount of recovery proceeds consistent with their rights of payment existing immediately prior to the petition date and only in line with the recovery waterfall.

Unipharma is a Tamarac, Fla., health care packaging company serving the pharmaceutical and nutraceutical sectors in the development, manufacturing and packaging of liquid, disposable and single-dose units. The company filed bankruptcy on Dec. 7 under Chapter 11 case number 20-23348.

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