Briggs & Stratton Corp.’s unsecured creditors will receive 7 cents to 10 cents on the dollar depending on when the company completes its bankruptcy court-approved sale to KPS Capital Partners, the Milwaukee Business Journal reported. The final amount will depend partly on how quickly Wauwatosa-based Briggs can complete its sale to the New York City private equity firm. The sooner the sale is transacted, the more money will be available, said attorneys for Briggs & Stratton and its unsecured creditors committee. “The unsecured creditors are not getting huge returns,” Robert Stark, the lead attorney for the unsecured creditors' committee, said yesterday during a hearing on the sale plan. Bankruptcy Judge Barry Schermer presided over the hearing yesterday morning and on approved the plan in the afternoon. Briggs & Stratton reached agreements with its unsecured creditors' committee and the Pension Benefit Guaranty Corp. prior to the hearing that cleared the path for Judge Schermer’s approval. Judge Schermer's approval of the plan will allow Briggs & Stratton and KPS to proceed with the transaction they announced July 20 when Briggs filed for chapter 11 bankruptcy. The sale will be completed the week of Sept. 21, said Ronit Berkovich, an attorney for Briggs. The funds available to unsecured creditors will range from $35 million to $45 million, assuming the sale closes swiftly, Stark said. That would yield payments of 7 cents to 8.4 cents on the dollar, he said. Read more.
Berkovich will be among the speakers at the Insolvency 2020 Virtual Summit kicking off today. Click here for more information and to register.
