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An Illinois Bankruptcy Court recently confirmed the liquidation plan of wire and cable maker Anicom Inc., moving the company one step closer to ending its Chapter 11 bankruptcy that began more than four years ago. According to the liquidation plan offered by Jenner & Block on behalf of Anicom’s unsecured creditors committee, approximately $42.35 million of recoveries will be divided among the committee, Anicom’s lenders, and its shareholders.
Nearly $17 million of the total recoveries will come from a separate joint recovery agreement between Anicom’s unsecured creditors committee, its lenders, and its largest shareholder – the State of Wisconsin Investment Board.
Under that agreement, a former Anicom director and an officer jointly paid $12.4 million to the plan. The remaining $4.5 million was collected from Anicom’s D&O insurer.
In addition, Anicom’s auditor paid $21.5 million and $3.95 million was recovered from preference actions.
Anicom had filed for bankruptcy in January 2001 after accounting irregularities triggered defaults on credit lines and securities litigation against several directors and officers.
The Jenner & Block legal team representing Anicom’s unsecured creditors committee includes Partners Ronald R. Peterson, Catherine L. Steege, Jerry L. Switzer Jr. and Associate Brian H. Meldrum.