Liquidating plan confirmed after Avnet sale
Hartford Computer Hardware and affiliates filed Chapter 11 on Dec. 12, 2011 with a sale-first posture: the business provided North American electronics and computer repair, depot repair, parts distribution, and onsite installation services, employing about 486 people across Illinois, California, Florida, Maryland, and Ontario. CEO Brian Mittman said revenue had grown from $55.1 million in 2006 to $95.1 million, but the debt stack included $72.2 million owed to Delaware Street Capital Master Fund as senior lender and $1.5 million owed to MRR Venture as subordinated lender; Avnet was already positioned as buyer for substantially all HCG and Nexicore assets at a $35.5 million cash price, subject to adjustments and earnout rights source filing.
The sale to Avnet, Inc. and Avnet International (Canada) Ltd. closed effective April 2, 2012, leaving Hartford in wind-down mode with escrows, earnout rights, and residual causes of action feeding a liquidation waterfall. The debtors and the Official Committee of Unsecured Creditors then co-sponsored a joint liquidation plan; disclosure materials estimated about $1.0 million for general unsecured creditors from Hartford trust assets, including settlement consideration and roughly 25 avoidance actions source filing. Confirmation resolved Sony’s objection, overruled the MRR Group’s challenge, and followed overwhelming voting support from Delaware Street and general unsecured creditors; the order vests estate property in a liquidating trust, appoints post-confirmation distribution machinery, and authorizes dissolution after implementation source filing source filing.
