The US Bankruptcy Court approved the modified pre-packaged plan reorganization and disclosure statement of Novation Companies, Inc. on October 6, 2023. The debtor has filed its modified plan in the Court on September 27, 2023. As per the modified plan, administrative claims, fee claims, United States trustee fees, priority tax claims, priority non-tax claims, DIP claims and other secured claims will be paid in full in cash.

Intercompany claims and interests in subsidiaries shall be reinstated. Interests in Novation and 510(b) Claims shall be cancelled. Noteholder Claims of $97.80 million shall be paid on pro rata basis in equity.

The plan shall be funded through cash in hand and issuance of equity and preferred stock.