Mortgage firm’s attorney: Liquidation plan likely to pass

BusinessRockford.com Staff Reports

Special report: Commercial Mortgage & Finance bankruptcy

ROCKFORD — Commercial Mortgage & Finance’s liquidation plan looks like a lock to pass, with 99 percent of creditors voting to accept the deal.

The company’s attorney, Gregory Jordan, said today that about 900 creditors voted for the plan and only 15 against it. The company has about 1,400 creditors.

“It looks very likely the plan will pass” at next week’s confirmation hearing, Jordan said.

The bankrupt company sold promissory notes to investors on six- and nine-month terms and offered higher interest rates than traditional certificates of deposit. The company filed for Chapter 11 bankruptcy protection Oct. 8 after it was unable to pay out when a rash of investors tried to cash out their notes.

According to an analysis of the company’s liquidation plan, about $25 million of the $63 million owed to creditors will be available after the company sells its remaining assets.