Plan parties reach $10.75 million settlement ahead of confirmation
The Debtors, Official Committee of Unsecured Creditors, PAMC Realty and Benjamin Landa asked the court to approve a settlement that removes a major obstacle to the Committee’s Chapter 11 plan. Under the Rule 9019 settlement motion, the plan retains the $10 million Pottsville Buyers Note for general unsecured creditors and receives an additional $750,000 cash contribution. PAMC and Landa will withdraw their plan objections and have their claims and interests expunged, while the Debtors and Committee will release avoidance and other estate claims against the settling parties; potential D&O insurance claims remain preserved.
The agreement resolves PAMC and Landa’s challenge to the plan’s substantive-consolidation treatment and avoids a likely multi-day confirmation trial. Approval remains pending at the July 28 combined hearing, but the settlement materially improves the plan’s confirmation posture by converting litigation over consolidation and estate causes of action into $10.75 million of preserved or additional value for unsecured creditors.
