DALLAS - MCorp announced the filing of revised liquidation plans in U.S. bankruptcy court for itself and its two subsidiaries, MCorp Financial Inc. and MCorp Management.
With certain exceptions, the plans contemplate a strict priority payout to senior creditors, followed by junior creditors. Each plan utilizes a liquidating trust, which would be controlled for the first two years by the junior creditors.
"We believe that the plans serve the best interest of claimants and are confirmable," said Peter B. Bartholow, MCorp's president and chief executive officer. "We attempted to address the concerns raised by the bankruptcy court at the time of our last confirmation hearing." The previous hearing was in January.
MCorp said a group of senior bondholders had filed competing Chapter 11 plans for the three MCorp debtors.