Novation Companies, Inc. filed a pre-packaged joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on August 13, 2023. As per the plan filed, 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 $0.98 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.

Novation Companies, Inc. filed a modified pre-packaged joint plan of reorganization in the US Bankruptcy Court on September 27, 2023. As per the plan filed, there are no changes in the treatment of any claim class or sources of plan funding.