Cynergy Creditors See Little Return Under Ch. 11 Plan

Law360, New York (November 12, 2010, 5:44 PM EST) -- Cynergy Data LLC received bankruptcy court approval Friday for its disclosure statement as the defunct credit card processor moves forward on a Chapter 11 liquidation plan that envisions minimal recovery for creditors.

Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware signed off on the document after the debtors amended the disclosure to resolve the objections of two lenders that were concerned funds held in escrow pursuant to a settlement would be released for distribution to creditors.

The debtors altered the statement...
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