Connaught Group, committee's first amended liquidation plan confirmed

By Caroline Salls

Pittsburgh, Oct. 10 - The plan of liquidation filed by Connaught Group, Ltd. and its official committee of unsecured creditors was confirmed Wednesday by the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the purpose of the plan is to liquidate, collect and maximize the cash value of the company's remaining assets.

Claims will be satisfied through the creation of a liquidating trust and distribution of the proceeds raised from the sale and liquidation of remaining assets, claims and causes of action.

Treatment of creditors under the company's plan of liquidation will include:

• Holders of administrative claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• Holders of secured claims will receive treatment that will render their claims unimpaired;

• Holders of general unsecured claims will receive a share of proceeds remaining after payment of administrative, priority and secured claims; and

• Holders of equity interests and intercompany claims will receive no distribution.

Connaught is a New York-based direct seller of high-end women's apparel in the United States. The company filed for bankruptcy on Feb. 9, 2012 under Chapter 11 case number 12-10512.

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