Shared Work-Space Company Knotel Files Liquidation Plan

Knotel Inc., the bankrupt operator of shared office spaces, filed a liquidation plan that proposes to pay creditors pennies on the dollar after selling its business to a secured lender.

A newly created liquidating trust would pay unsecured creditors between 0.3% and 2.4% of their claims, worth about $300 million to $400 million, according to its liquidation plan and disclosure statement filed Wednesday in the U.S. Bankruptcy Court for the District Court of Delaware.

The trust would hold rights to sue third parties, claims against directors and officers, and assets excluded from the overall sale of the company.

Current owners ...