Bankruptcy Court Confirms Plan By Creditors for BankEast Corp.
MANCHESTER, N.H. - BankEast Corp., said the federal bankruptcy court has confirmed a reorganization plan proposed by two of its creditors, Phoenix Mutual Life Insurance Co. and John Alden Life Insurance Co.
The plan was previously approved by creditors and stockholders of BankEast, which has $866 million in assets and is among several troubled banking companies in the state.
BankEast said the plan includes payment of 75 cents on the dollar to smaller trade creditors and debenture holders, most of them located in New Hampshire.
The plan calls for BankEast to transfer certain liquid assets to a creditors' trust committee, which will also hold security interests on other corporate assets for the benefit of the company's larger shareholders.
Initial payments will be made from the trust to classes of BankEast creditors in percentages of their allowed claims, and the creditors' trust will receive a note from the company in an amount equal to the unpaid portion of certain creditors' claims.
Payment on the remaining claims, to be provided from the creditors' trust, will depend on the future prospects of BankEast's banking operation.