Plastiq is now a post-confirmation case administered by Dundon Advisers LLC as Litigation Trustee, with the plan already confirmed and effective and the estate still open pending further administration. The latest post-confirmation report states that the plan was confirmed on September 15, 2023, became effective on September 29, 2023, and that a final decree application is expected by December 31, 2026, while cumulative post-effective-date transfers totaled $2.2 million through the quarter ended January 31, 2026 Chapter 11 Post-Confirmation ReportDkt. 396.
The case began on May 24, 2023, when Plastiq and affiliates filed chapter 11 in Delaware Voluntary PetitionDkt. 1. The filing followed a rapid deterioration after the company had expanded from its SMB payment automation platform into multiple business lines, processed billions of dollars of payment volume in 2022, acquired Nearside, and pursued a de-SPAC transaction that did not close. By late 2022 and early 2023, Plastiq had defaulted on minimum cash balance requirements, reduced its workforce, terminated vendor arrangements, and moved toward a bankruptcy sale process after Priority indicated it would proceed only through chapter 11 First Day DeclarationDkt. 2.
The restructuring path was principally a sale-and-wind-down case rather than an operating reorganization. Before filing, the debtors marketed the business to 107 strategic buyers and 79 financial buyers, then entered chapter 11 with a stalking-horse asset purchase agreement with Plastiq, Powered by Priority, LLC for a $27.5 million cash purchase price and a $7.1 million DIP facility to fund the case, preserve customer operations, pay the reduced workforce, and cover administrative costs . The debtor entered the case with a Blue Torch prepetition term loan facility, trade liabilities, warrant put-right obligations, and convertible notes, including roughly $11 million of identified non-term-loan obligations in the record .
The current posture is liquidation-trust administration. The post-confirmation report shows $1.49 million of cumulative bankruptcy professional fees and expenses paid since the petition date, priority claims paid in full at $10,000, and no reported plan distributions yet to administrative, secured, or general unsecured claims through the latest reporting quarter Chapter 11 Post-Confirmation ReportDkt. 396.
