- From LexisNexis® Mealey’s™ Daily Legal News.
Bankrupt Saab Cars North America (SCNA) Inc. on June 11 filed an amended plan of liquidation that calls for a settlement of claims asserted by Ally Financial Inc. by reducing the claims from $ 18,507,755.76 to $ 1,008,048.58 (In Re: Saab Cars North America, No. 12-10344, Chapter 11, D. Del. Bkcy.).
Saab filed for Chapter 11 bankruptcy on Jan. 29, 2012.
The liquidation plan provides for the vesting of all of SCNA’s remaining assets in a liquidation trust, governed by a liquidation trust agreement.
Substantially all of SCNA’s operating assets have been sold by SCNA or by sellers of new vehicle inventory and company cars, SCNA says.
SCNA or the liquidation trustee will continue to sell any remaining assets with or without Bankruptcy Court approval, SCNA says, until all assets are fully liquidated or abandoned. The liquidation trustee, upon the liquidation or abandonment of the remaining assets, will distribute the proceeds from the liquidation to the holders of allowed claims in order of the priorities set forth in the plan, SCNA says.
The plan also provides for the termination of all equity interests in SCNA and the deemed dissolution of SCNA from and after the date the plan becomes effective.
The liquidation plan also settles the claim made by Ally Financial Inc., which said SCNA owed it $ 18,507,755.76.
Under the agreement between SCNA and Ally, Ally’s claims will be allowed in the amount of $ 1,008,048.58 and will be paid, without deduction, out of what are called vehicle inventory proceeds – proceeds from the sales of vehicles SCNA had when it filed for bankruptcy.
The plan calls for $ 2,076,880.33 of the vehicle inventory proceeds to be placed in escrow to cover Ally’s unliquidated claims as follows: $ 1,426,471 for future residual support obligations, $ 50,409.33 for future target market support agreement obligations related to contracts with dealers, $ 500,000 for future vehicle repurchase obligations and $ 100,000 for future legal fees.
Ally had sought the examination of key people in the Saab bankruptcy pursuant to Federal Rule of Bankruptcy Procedure 2004 and Delaware Bankruptcy Law Rule 2004-1 as part of its plan to file a competing plan of liquidation.
SCNA argued that the facts of the case “strongly suggest” that Ally’s claim in the bankruptcy is oversecured. Specifically, Ally filed a secured proof of claim for $ 18,507,755.76, of which at least $ 13,513,581 would appear to constitute contingent claims, SCNA argued.
Saab is represented by Joseph H. Huston Jr. and Maria Aprile Sawczuk of Stevens & Lee in Wilmington and Thomas B. Radom, Bruce L. Sendek and Angela Boufford of Butzel Long in Bloomfield Hills, Mich. Ally is represented by Charles M. Tatelbaum and Esperanza Segarra of Hinshaw & Culbertson in Wilmington and James F. Harker and Scott T. Earle of Cohen Seglias Pallas Greenhal & Furman in Pittsburgh.