Daily News: May 8, 2012

HUSA Liquidating Announces Court Approval of Liquidation Plan

HUSA Liquidating Corporation announced that the Amended Chapter 11 Plan of Liquidation of HearUSA, Inc. (n/k/a HUSA Liquidating Corporation) was approved by the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division at a confirmation hearing.

The plan shall become effective on a date that is 30 days after entry of the confirmation order and all conditions precedent have been satisfied, which is currently expected to be June 7, 2012. On the effective date, all of the company’s remaining assets, consisting primarily of cash received from the sale of substantially all of its assets in September 2011, will be transferred to a Liquidating Trust, shares of the company’s common stock will be extinguished, holders will be entitled to an interest in the Liquidating Trust, and the company will be dissolved.

The Liquidating Trustee will make payments on all allowed claims of creditors as well as holders of the company’s preferred stock and thereafter make distributions to the former holders of the company’s common stock and common stock interests in the Liquidating Trust. Holders of allowed secured and unsecured claims are expected to receive 100% of their allowed claims and holders of preferred stock are expected to receive 100% of the face value of such preferred stock plus accrued and unpaid dividends and some redemption premiums. The company currently estimates that holders of common stock and those persons holding interests upon the exercise of options as contemplated in the plan, will receive approximately $0.97 per share of common stock.

As previously disclosed, on May 16, 2011, HearUSA, Inc. filed a voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court. Subsequently, on July 29, 2011, the Company conducted a section 363 auction for the sale of substantially all of its assets and, as a result of that auction, entered into an Asset Purchase Agreement to sell substantially all of its assets to an affiliate of Siemens Hearing Instruments, Inc. On August 17, 2011, the Bankruptcy Court issued a sale order approving the sale and the sale closed on September 9, 2011.

Previously on abfjournal.com:

HearUSA Completes Sale of Assets to Siemens Hearing Instruments, Friday, September 16, 2011