Mervyn's Holdings gets disclosure statement OK, confirmation March 20

By Jim Witters

Wilmington, Del., Jan. 28 - Mervyn's Holdings, LLC received approval of the disclosure statement associated with its joint plan of liquidation during a Jan. 28 hearing in the U.S. Bankruptcy Court for the District of Delaware.

A plan confirmation hearing is scheduled for 10 a.m. ET on March 20.

Mervyn's filed its plan and disclosure statement on Dec. 21.

As previously reported, the company and official committee of unsecured creditors said the purpose of the plan is to provide for the liquidation and conversion of all of Mervyn's remaining assets to cash and the distribution of the net proceeds to creditors.

A plan administrator will be appointed to resolve disputed claims, implement the plan terms and make distributions.

Creditor treatment

Under the proposed plan, treatment of creditors includes the following:

• Debtor-in-possession facility claims were previously paid in full in cash;

• Administrative claims, secured tax claims, priority tax claims and other priority claims will be paid in full in cash;

• Other secured claims will either be reinstated, holders will be paid in full in cash or holders will receive the collateral securing the claims;

• Holders of general unsecured claims will receive a share of distributions made by the plan administrator; and

• Holders of equity interests will receive no distributions.

Mervyn's, a San Francisco-based department store, filed for bankruptcy on July 29, 2008. Its Chapter 11 case number is 08-11586.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.