Cadence Innovation's disclosure statement OK'd, plan hearing Aug. 17

By Lisa Kerner

Charlotte, N.C., June 29 - Cadence Innovation LLC's disclosure statement was approved on Wednesday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing to confirm Cadence's plan of liquidation will be held on Aug. 17.

As previously reported, under the proposed plan all of the company's assets will be transferred to a liquidating trust on the plan effective date. The assets will then be liquidated, and the proceeds will be distributed to creditors.

Treatment of creditors will include the following:

• Administrative claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• Holders of miscellaneous secured claims will receive either cash equal to the lesser of the amount of the claim or the value of the property securing the claim or receive the property securing the claim;

• Holders of general unsecured claims will receive a share of cash remaining after payment of administrative, priority and miscellaneous secured claims; and

• Holders of equity interests will receive no distribution, and the interests will be cancelled.

Cadence, a Troy, Mich.-based auto parts supplier, filed for bankruptcy on Aug. 26, 2008. Its Chapter 11 case number is 08-11973.

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