Court confirms plan after RCR Plumbing's construction-liquidity chapter 11
RCR Plumbing and Mechanical filed chapter 11 in the Central District of California on Oct. 12, 2011, as a California plumbing and mechanical contractor serving large commercial and residential construction projects across California source filing source filing. At filing, RCR had roughly 350-400 employees and sought immediate authority for payroll, utility, bank-account, reclamation, and cash-collateral relief to keep projects from defaulting. The first cash-collateral order authorized use through Nov. 1, 2011 under budget, granted replacement liens to PNC Bank and the Richey Family Trust, and directed PNC to move about $613,000 from a reserve account into a blocked DIP account while turning over customer and vendor receipts to the debtor's Wells Fargo DIP accounts source filing.
By its amended SOFA, RCR reported gross revenue of $1.46 million for 2011 year-to-date, $4.24 million for 2010, and $6.54 million for 2009, and said operations had ceased around November 2011 source filing. The U.S. Trustee appointed a seven-member unsecured creditors' committee on Nov. 8, 2011, including representatives tied to Hajoca/HD Supply, Sacramento Windustrial, Aequitas Law Group, Winnelson-Riverside, Hirsch Pipe & Supply, Ferguson Enterprises, and Fiber Care Baths source filing. The court confirmed RCR's Fourth Amended Chapter 11 Plan on Dec. 18, 2012, set Dec. 14 as the effective date if no stay and the Ace settlement was effective, appointed Peter Kravitz as plan trustee, authorized a $3.2 million PNC payment from the reserve account, set a Jan. 30, 2013 administrative-claims bar date, and struck specified release provisions source filing.