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NEW YORK -- Getty Petroleum Marketing Inc.'s (GPMI) official committee of unsecured creditors has called for the company to liquidate, according to Law360.
The committee filed an amended GPMI Chapter 11 plan in the U.S. Bankruptcy Court, Southern District of New York, on Wednesday.
The unsecured creditors told the court the goal of the revised Chapter 11 plan was provide the greatest cash distribution possible to all claim holders and to deliver "the highest, best and quickest recovery" possible for holders of unsecured claims," the website reported.
However, under the plan, not every creditor would be paid. Impaired holders of priority, and secured and general unsecured claims would receive considerations, the news outlet reported. But holders of intercompany claims and interests would receive nothing.
According to Law360, intercompany claimants are sure to reject the amended plan. However, a disclosure statement issued by the committee claims that the plan can still be approved under Section 1129(b) of the bankruptcy code if it is accepted by at least two-thirds in dollar amount and half of the allowed claims in each voting class.
Before the amended Chapter 11 filing can be sent to claim holders for a vote, U.S. Bankruptcy Court Judge Shelley C. Chapmanmust approve the plan, the news outlet reported.
"It is the committee's view that the first amended plan is fair and equitable, complies with all requirements of the bankruptcy code, and provides the best available recovery to the debtors' creditors," the creditors' disclosure statement said, as quoted by the news source.
Also included in the amended Chapter 11 filing is a provision absolving all debtors, the committee, and Getty Realty Corp., who signed a master lease with GPMI to operate 788 convenience stores with gas, with any wrongdoing, the news source relayed. GPMI subsequently had subleased the properties to other tenants, many of whom are independent c-store operators.
As CSNews Online previously reported, GPMI filed for bankruptcy protection on Dec. 5. Getty Realty has since received permission from the U.S. Bankruptcy Court, Southern District of New York, to reject the master lease.
Getty Realty has already repossessed 787 of the properties in question. The real estate investment trust has gone on to sell some of those locations and sign new leases with several other c-store and gas station operators.