ARM Financial Group Inc. (ARM) filed a chapter 11 liquidation plan and related disclosure statement with the U.S. Bankruptcy Court for the District of Delaware.
The plan provides for liquidation of all ARM’s remaining assets, distribution of the liquidation proceeds to the company’s creditors and preferred shareholders, and ARM’s cancellation of all outstanding shares of its common stock. It does not provide for any distribution to common shareholders because proceeds from the company’s wind down of business and liquidation are expected to be insufficient for such a distribution.
Under provisions of chapter 11 of the U.S. Bankruptcy Code, ARM is a debtor in possession and has been winding down its business and selling assets since Dec. 20, 1999, when it filed a voluntary petition for relief under chapter 11.
Both the liquidation plan and disclosure statement are subject to approval by the Bankruptcy Court, which has set a hearing to approve the latter for July 5, 2000.
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