The US Bankruptcy Court approved the second revised combined joint plan of liquidation and disclosure statement of Timber Pharmaceuticals, Inc. on May 6, 2024. The debtor has filed its amended plan in the Court on March 20, 2024. As per the amended plan, administrative claims, fee claims, tax claims, shall be paid in full in cash.

Other priority claims of $1000, other secured claims of $0, shall be paid in full in cash. General unsecured claims are estimated to be in the range of $0.81 million - $1.53 million and shall be recovered between 11.1% - 44.3% and shall be settled in cash. Subordinated claims $0 shall not receive any distribution under the plan.

Interests shall be deemed canceled, extinguished and discharged and of no further force or effect, and the holders of interests shall not be entitled to receive or retain any property on account of such interests. Intercompany claims and intercompany interests shall be adjusted, continued, settled, reinstated, discharged or eliminated. The plan shall be funded through cash and sale of assets.