Creditors Get Little Recovery In Northeast's Plan

Law360, New York (October 5, 2009, 3:51 PM EDT) -- Ethanol production startup Northeast Biofuels LP, which recently sold its assets to Sunoco Inc., has lodged a plan of liquidation and accompanying disclosure statement that lays out very little recovery for creditors.

The disclosure statement, filed Friday in the U.S. Bankruptcy Court for the Northern District of New York, estimated that the holders of secured claims would recover only 6 to 10 percent of their investment, while unsecured creditors would recover 3 to 9 percent.

Though equity holders will get nothing, administrative claims, fee claims and...
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