ATPG Senior 11.875% 2nd Lien Bonds (fka ATPG.GE)

[56Chevy]

on a plan of liquidation

is there a comfirmation hearing and vote just like a plan or reorganization? with a disclosure statement.

Yes. But each POL (or POR) is different and can't really be compared to another BK...so any class voting privileges on their individual treatment will depend on what the plan itself calls for.

In the Borders Group example the Debtor and the General Unsecured Creditors were the proponents of the plan (they wrote the plan) and under their plan the Priority claim holders and the Secured claim holders would receive 100% recovery...which means both of those classes are 'unimpaired' so they're 'deemed to accept' (or in other words their claim has been satisified which is all they're entitled to and no need to have them vote).

The general unsecured creditors, on the other hand, will not be receiving full recovery under the plan but there will be enough proceeds from the liquidation sale(s) to pay them a partial recovery ..so they are 'impaired' but entitled to vote.

Since the liquidation won't generate enough money make the general unsecured creditors whole that means there won't be any money left over to flow down to equity holders ...which leaves them 'impaired' and therefore 'deemed to reject' (it goes without saying that if they were allowed to vote they would vote no).

A POL has to be presented first but in the ATP situation you have to assume there will be very little left to liquidate since 99% of the assets were sold in a 363 sale (pending approval). But if for example somehow a small amount would flow to 2nd lien holders after the liquidation sale (it no doubt wouldn't be enough to make us whole) but they would be 'impaired' and entitled to vote.

ATP unsecured creditors would be 'impaired' and deemed to reject ...and the same is true for ATP equity holders.