The US Bankruptcy Court approved the first amended combined plan of liquidation and disclosure statement of American Virtual Cloud Technologies, Inc. on May 23, 2023. The debtor has filed its amended plan in the Court on May 22, 2023. As per the amended plan, administrative expense claims, priority tax claims, professional claims, statutory fees, secured claims of $0, shall be paid in full in cash.

Priority non-tax claims of $0.31 million shall be paid in full in cash. General unsecured claims of $6.10 million shall be recovered 95% i.e., $5.80 million and shall receive its pro rat share of net distributable proceeds. Intercompany Claims will be eliminated.

AVCT Equity Interests shall receive no distribution under the plan and shall be cancelled. Intercompany Equity Interests shall be reinstated. The plan shall be funded through cash and sale of assets.