American Realty Investors Inc. filed a plan of liquidation with related disclosure statement in the US Bankruptcy Court on January 1, 2014. As per the plan filed, administrative claims, United States Trustee fees, professional claims and priority tax claims shall be paid in full in cash. Secured claims of taxing authorities shall be paid in full from the Taxing Authority Distribution Reserve.

Unsecured claims of Atlantic parties of $73 million shall receive its pro rata share of the Series A liquidating trust interests on the effective date and distributions of available cash from the Series A distribution reserve. Unsecured claims related to guaranty creditors of $11.43 million shall receive its pro rata share of Series A liquidating trust interests. General unsecured claims of $0.08 million shall be paid an amount equal to 50% of their allowed claim from the general unsecured claims distribution reserve.

Subordinated claims shall not be entitled to receive any payments or retain any property. Equity interest holders shall be eliminated and extinguished upon the effective date. The debtor will create a liquidating trust to liquidate certain liquidating trust assets and distribute any remaining funds in accordance with the plan to holders of Series A liquidating trust interests and Series B liquidating trust interests.

ARI settlement proceeds of $5 million shall be used to fund the plan.