AmeriFirst files Chapter 11 liquidation plan, disclosure statement

By Sarah Lizee

Olympia, Wash., Oct. 20 – AmeriFirst Financial, Inc. filed a Chapter 11 plan of liquidation and disclosure statement Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The plan separates treatment for holders of claims against AmeriFirst and holders of claims against debtor Phoenix 1040 LLC.

AmeriFirst has decided to market and sell substantially all of its assets and made the Chapter 11 filing to facilitate the sales and winddown of its operations.

The company is also seeking approval of a private sale of its mortgage loans to Oaktree Funding Corp., Inc. AmeriFirst said this sale would free up $1.4 million in cash.

Under the plan, holders of administrative claims, debtor-in-possession facility claims, priority tax claims, priority non-tax claims and other secured claims against AmeriFirst are unimpaired.

Holders of prepetition lender secured claims against AmeriFirst will retain their liens on their applicable collateral (consisting of distributable assets but excluding any liquidating trust assets) until the collateral is disposed of or released, and the net proceeds of the disposition (after payment of higher priority claims) will be paid by the debtors to holders in this class. This class is impaired and entitled to vote on the plan.

Holders of unsecured claims against AmeriFirst will receive their pro rata share of the liquidating trust interests in exchange for their claims, which entitle them to a pro rata share of the $250,000 general unsecured claim fund and a pro rata share of any net proceeds of remaining liquidating trust assets. This class is impaired and entitled to vote.

Holders of intercompany claims against AmeriFirst will not receive a distribution.

Interests in AmeriFirst will be canceled with no distribution.

Holders of administrative claims against Phoenix are unimpaired.

There will be no distribution to holders of unsecured claims or intercompany claims against Phoenix.

Phoenix interests are unimpaired.

AmeriFirst Financial is a mortgage lender based in Mesa, Ariz. The company filed bankruptcy on Aug. 24 under Chapter 11 case number 23-11240.

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