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Bayou Group LLC and its debtor-affiliates delivered their Joint Chapter 11 Plan of Reorganization accompanying a disclosure statement describing that Plan to the U.S. Bankruptcy Court for the Southern District of New York.

The Plan provides separate treatment of claims against Bayou Management LLC and Bayou Group's private pooled investment funds called the Bayou Hedge Funds.

The Bayou Hedge Funds is composed of Bayou Superfund LLC, Bayou No Leverage Fund LLC, Bayou Accredited Funds LLC, Bayou Affiliates Fund LLC and Bayou Fund.

Treatment of Claims

A) Bayou Hedge Funds

Class 1 Priority Non-Tax Claims will receive payment in full.

Holders of Class 2 Off-Shore Claims will be paid pursuant to the consummation of a settlement agreement by the Bayou Hedge Funds Litigation Trust.

Class 3A Senior General Unsecured Claims will receive distributions from the Bayou Hedge Funds Litigation Trust in an amount equal to the holder's pro rata share.

Subject to the payment in full or reserve of all allowed senior general unsecured claims and the deemed partial disallowance of certain Class 3A Claims, each holder of a Class 3B General Unsecured Claim -- including all Converted Class 4 Claims, if any -- will receive distributions from the Bayou Hedge Funds Litigation Trust in an amount equal to each holder's pro rata share.

Holders of Class 4 Redeemer Defendant Claims who do not elect to
enter into a Settlement Agreement will retain all of their claims
and will be entitled to assert or pursue their claims against the
Bayou Hedge Funds or the Bayou Hedge Funds Litigation Trust.

The Plan does not provide any distribution to the holders of Class 5 Equity Interests in the Debtors.

B) Bayou Management

Holders of Class 1 Priority Non-Tax Claims will be paid in full while holders of Class 2 Off-Shore Claims will be paid pursuant to the consummation of a settlement agreement by the Bayou Management Litigation Trust.

Class 3A Senior General Unsecured Claims will receive distributions from the Bayou Management Litigation Trust in an amount equal to the holder's pro rata share.

Subject to the payment in full or reserve of all Allowed Senior General Unsecured Claims and the deemed partial disallowance of certain Class 3B Claims, each holder of a Class 3B General Unsecured Claim -- including all Converted Class 4 Claims, if any -- will receive distributions from the Bayou Management Litigation Trust in an amount equal to the holder's pro rata share.

Class 4 Redeemer Defendant Claims and Class 5 Equity Interests in the Debtors will receive nothing under the Plan.

About Bayou Group

Based in Chicago, Illinois, Bayou Group, LLC, operates and manages hedge funds.  The company and its affiliates filed for chapter 11 protection on May 30, 2006 (Bankr. S.D.N.Y. Case No. 06-22306).  Elise Scherr Frejka, Esq., at Dechert LLP, represents the Debtors in their restructuring efforts.  Joseph A. Gershman, Esq., and Robert M. Novick, Esq., at Kasowitz, Benson, Torres & Friedman, LLP, represents the Official Committee of Unsecured Creditors.  When the Debtors filed for protection from their creditors, they estimated assets and debts of more than $100 million.