PPI's Plan Spells Out Low Recovery For Creditors

Law360, New York (September 13, 2010, 6:44 PM EDT) -- Bankrupt auto parts supplier PPI Holdings Inc. has lodged a Chapter 11 plan of liquidation and accompanying disclosure statement that would largely wipe out unsecured creditors.

According to the disclosure statement, filed Friday in the U.S. Bankruptcy Court for the District of Delaware, fee administrative claims, professional fee claims, priority tax claims, secured claims and priority unsecured claims would be paid in full, while convenience claimants would get a recovery of 3.5 percent.

General unsecured creditors would get a total recovery of $150,000, which is only...
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