Westech Capital Corp. filed a plan of reorganization with related disclosure statement in the US Bankruptcy Court on July 11, 2016. As per the plan filed, administrative expense claims of $0.20 million and US Trustee fees shall be paid in full in cash.

General unsecured claims shall be paid the lesser of payment in full or $1.2 million. The balance of allowed claims will be paid in full within 24 months of the effective date of the plan. Series A Preferred Shares will be converted into 25,000 shares of new common stock for each Series A Preferred Share.

Common shares shall be cancelled. Westech will be recapitalized by James B. Fellus through the contribution of real property valued at over $1.1 million and 10% equity in Spencer Winston Securities Corp. valued at $0.1 million, and an option to acquire an additional 50% of Spencer Winston at a price equal to the net capital of the firm on the date the option is exercised.