Year Later: Court Confirms Diamond's Second Amended Chapter 11 Plan of
The U.S. Bankruptcy Court for the District of Delaware has issued an order confirming DG Liquidation Corp.'s second amended Chapter 11 Plan of Liquidation, filed with the court last September. The order, signed by the Hon. Christopher S. Sontchi, was issued on March 25-just a few days shy of April 1, the one-year anniversary of the company's original bankruptcy filing. (Several months ago, Diamond Glass had motioned to be referred to as DG Liquidation Corp. in future court business, since the assets of the company have been completely consolidated into Belron US, which purchased the company via auction last June.)
In its "Findings of Fact, Conclusions of Law and Order," the court notes that the plan complies with all of the applicable provisions of the Bankruptcy Code, and satisfies the requirements for confirmation; likewise, the Court finds that the classification of claims and interests under the plan is proper.
The plan is also noted "to have been proposed in good faith," and with this order, "The Debtors and the Plan Administrator are hereby authorized, empowered and ordered to issue, executive, deliver, file and record any documents or court papers or pleadings, and to take any and all actions that are necessary or desirable to implement, effectuate and consummate the transactions contemplated by the Plan, whether or not specifically referred to therein and without further application or order of this court."
Under the terms of the order, after the effective date of the plan, "[DG Liquidiation] may wind up [its] affairs and make distributions to creditors." (According to the terms of the plan, the effective date is the point at which all of the conditions set forth in the plan are met.) Alfred T. Giuliano was appointed as plan administrator and will be compensated as noted in the plan.
According to court documents, contracts that have not been previously assumed and assigned or rejected by Diamond "shall be deemed rejected by the Debtors as of the Confirmation Date."
Once the plan becomes effective, Diamond bankruptcy counsel Foley & Lardner LLP and its local counsel, Young Conaway Stargatt & Taylor LLP, will be automatically withdrawn as counsel for the corporation, according to the order.
CLICK HERE for full text of order.
HERE for full text of plan.
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