ANCHORAGE - A federal bankruptcy judge has approved Kake Tribal Corp.'s bankruptcy reorganization plan, the company said.
Kake Tribal officials said Thursday the move means the company can repay unsecured creditors millions of dollars and move forward with new business ventures.
When the company filed for Chapter 11 protection in 1999, it had about $15.5 million in debt, chief executive Sam Jackson said at the time.
Kake Tribal was largely a logging, fishing and construction firm. It weathered industry downturns but succumbed to Chapter 11 after shareholder lawsuits over life insurance programs forced Kake Tribal to pay out hefty sums. The corporation, based in Kake on Kupreanof Island south of Juneau, has about 650 Native shareholders.
Within a few weeks it expects to make initial payments to all unsecured creditors, including shareholders, according to a Kake Tribal release. The payments will come from $9.5 million received in a land exchange with the federal government.