The US Bankruptcy Court approved the plan of reorganization of Electronic Sensor Technology, Inc. on April 29, 2015. The debtor has filed its plan in the Court on January 28, 2015. As per the approved plan, Administrative Claims, Professional Fees Claims of $0.05 million, US Trustee Fees, Priority Claims of $0.03 million and Priority Tax Claims will be paid in full in cash.

New Secured Debt of $0.6 million will be settled by issuing preferred stock. Equity Interest Related Claims will not receive any distribution. General Unsecured Claims of $1.21 million will have a recovery of 15% of $0.18 million in cash.

General Unsecured Claims-Halfmoon Bay of $6.79 million will get new common stock to settle the claims. Common Stock will be cancelled and will not receive any distribution. The plan will be funded by cash in hand and exit financing. The debtor will also issue preferred stock and common stock.