Omtammot LLC filed a first amended joint plan of reorganization for Industrial Enterprises of America, Inc. and its subsidiaries in the US Bankruptcy Court on December 10, 2012. Under the plan, any portion of the disputed claims that become allowed claims will be paid the allowed amount plus interest at 3% per annum from the effective date in full. The treatement of other various claimant classes remains the same.

The administrative claims and priority tax claims and non-tax priority claims will be paid in full in cash. Existing IEAM interests and non-IEAM interests holders will retain their respective interests in the reorganized debtor. Prepetition lender secured claims will be paid, in full satisfaction, the new secured note.

IEAM general unsecured claims will be paid in full in cash. Subsidiary general unsecured claims will be paid 30% of the allowed claim in cash. Subordinated claims will be paid on a pro rata number of shares of Common Stock in reorganized debtor.

The debtor and its subsidiaries will continue to exist after the effective date as separate legal entities. The plan will be funded through cash in hand and issuance of New Secured Note.