Quadrant 4 Systems Corporation – Court Declares Liquidation Plan Effective, Amherst Partners Appointed Liquidating Trustee

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September 13, 2018 – Quadrant 4 Systems’ Amended Plan of Liquidation was declared effective [Docket No. 536]. The Plan was previously confirmed by the Court on August 24, 2018 [Docket No. 527]. The Court document notes, “Upon the Effective Date, Amherst Partners, LLC (the “Liquidating Trustee”) was appointed Liquidating Trustee of the Quadrant 4 Liquidating Trust (the “Trust”), and all assets of the Debtors’ estates were transferred to the Trust in accordance with the Plan. The Liquidating Trustee shall administer the Trust until the Chapter 11 Cases are closed, including the continued liquidation of assets and distributions to creditors in accordance with the Plan.” In its Disclosure Statement filed on July 6, 2018, the Debtors noted, “[A]ll of the Debtors’ Business Units have been sold or disposed of as going concerns pursuant to orders of the Bankruptcy Court (“Bankruptcy Court”) entered in the Chapter 11 Cases. The gross proceeds received and to be received from court approved sales/liquidation of the Debtors’ business assets in the Chapter 11 Cases are approximately $27,000,000.00. The Debtors do not have any ongoing business operations.” The Disclosure Statement provides the following detail on classes and claims:

  • Class 1 (“Secured Claims of BMO Harris Bank N.A.”) claims are entitled to vote. Total estimated claims are $8,485,731.13 and recovery is 100%. 
  • Class 2 (“Secured Claims of BIP Quadrant 4 System Debt Fund I, LLC”) claims are entitled to vote. Total estimated claims are $4,474,623.41 and recovery percentage is unknown.  
  • Class 3 (“Priority Non- Tax Claims”) claims are entitled to vote. Total estimated claims are $19,984.13 and recovery is 100%.
  • Class 4(a)-(b) (“General Unsecured Claims”) claims are entitled to vote. Total estimated claims are (a) $2,870,618.05, (b) $266,582.07 and recovery percentage is unknown.
  • Class 5(a) – (b) (“Insider Claims”) are entitled to vote. Total estimated claims are (a) $13,553,045.1 0, (b) $0.00 and recovery percentage is unknown.
  • Class 6 (“Q4 Equity Interests (Non- Insider)”) claims are not entitled to vote and recovery percentage is unknown.
  • Class 7 (“Stratitude Equity Interests”) claims are entitled to vote and recovery percentage is unknown. 
  • Class 8 (“Q4 Insider Equity Interests”) claims are not entitled to vote and recovery percentage is unknown.

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