On June 29, 2021, Judge Mary Walrath of the U.S. Bankruptcy Court for the District of Delaware confirmed the second amended plan of liquidation proposed jointly by certain of the Knotel debtors and the official committee of unsecured creditors (UCC), represented by Lowenstein Sandler’s Bankruptcy & Restructuring Department.
The plan incorporates a settlement between the debtors, the UCC, and the debtors’ purchaser and lender that, among other benefits, set aside $6.2 million for the benefit of creditors, plus an additional $500,000 for wind-down costs and certain other causes of action. Holders of allowed general unsecured claims will receive a pro rata share of cash distributions from the trust after payment of all liquidating trust expenses and all senior claims.
Lowenstein Sandler was selected as counsel to the UCC in the Chapter 11 bankruptcy cases of Knotel, Inc., and over 200 of its U.S.-based affiliates in February 2021. Together with their international non-debtor affiliates, the debtors operated dedicated flexible workspace with a focus on enterprise clients.
According to Reorg, the debtors also filed an amended voting tabulation showing what Lowenstein counsel Jennifer B. Kimble said was an “overwhelming” acceptance from the class of general unsecured claims (the only impaired class entitled to vote), to reflect additional ballots that were timely submitted through an e-ballot platform.
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