Zenergy Brands Proposes Wiping Out Equity in Reorganization

Zenergy Brands Inc. intends to pay its unsecured creditors about 10% of their claims and eliminate the interests of its current equity holders, according to the energy technology company’s Chapter 11 reorganization plan.

The plan will be funded by up to $375,000 in “new value” payments by the secured creditors and Zenergy’s continuing operations, according to support disclosures filed Tuesday in the U.S. Bankruptcy Court for the Eastern District of Texas.

The plan, filed Monday, also resolves Zenergy’s dispute with Zenergy’s senior secured creditor, TCA Global Credit Master Fund LP, which says it’s owed about $5.6 million.

Under the agreement, ...