New York Classic Motors’ Bankruptcy Plan Offers Payout Choices

A bankrupt unit of Classic Car Club Manhattan is proposing a Chapter 11 plan to pay its creditors a portion of their claims over a five-year period.

New York Classic Motors LLC’s plan takes advantage of Subchapter V, which offers a streamlined and less expensive method for small businesses to reorganize in Chapter 11. Created by the Small Business Reorganization Act of 2019, Subchapter V is available to companies with debts of $7.5 million or less.

The company’s plan, filed Thursday, would pay secured creditor HIL Holdings I LLC’s $2.9 million claim monthly over 60 months, along with 10% interest. ...