No, it doesn't "nullify any liens on IP and physical assets" under the laws. What it does is places those liens first in line for payment in the event of liquidation. In this "plan," the secured note is proposed to be paid in full by a payment schedule, in cash, or with a secured convertible note that allegedly guarantees full payment. They have to pay the secured creditors in full in order to offer anything to the inferior classes of creditors/stakeholders.
The court may order some alternative security, but if the debt remains in any form, there will be a lien on something.
Have to remember, bankruptcy protects the company from being foreclosed on by its creditors, but it also protects those creditors with security/liens to get the best deal possible.
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