Vesta Holdings files plan of liquidation and disclosure statement

By Sarah Lizee

Olympia, Wash., Feb. 10 – Vesta Holdings, LLC filed a combined Chapter 11 plan of liquidation and disclosure statement on Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company recently gained court approval to sell its assets to stalking horse and winning bidder SRA Holdings, LLC, an affiliate of some of the company’s prepetition lenders. The purchase price under the deal is comprised of a $125 million credit bid.

Under the plan, secured tax claims and other priority claims are unimpaired.

Under the purchase agreement, all of the DIP claims will be released when the sale closes.

Holders of prepetition lender claims, other secured claims and unsecured claims will receive beneficial interests in the liquidating trust entitling them to pro rata shares of distribution proceeds, if any.

Intercompany claims and interests will be reinstated, or canceled, released and extinguished with no distribution.

Interests and section 510(b) claims will be canceled with no distribution.

The Montgomeryville, Pa.-based wealth advisory, risk management services and insurance brokerage services company filed bankruptcy on Oct. 30 under Chapter 11 case number 22-11019.

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