Fred’s disclosure statement OK’d; plan hearing scheduled for April 28

By Caroline Salls

Pittsburgh, March 3 – Fred’s, Inc. obtained court approval of the disclosure statement for its Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for April 28.

A liquidating trust will be established to fund plan distributions with sale proceeds, and a trustee will be appointed to administer the trust and plan distributions.

Under the plan, holders of administrative expense claims, other priority claims and debtor-in-possession financing claims will be paid in full in cash.

Other secured claims will be paid in full in cash or holders will receive the property securing their claims.

Holders of general unsecured claims will receive a share of distribution proceeds, minus any amount the liquidating trust deems necessary to wind up Fred’s estates and administer the liquidating trust.

Holders of equity interests, intercompany claims and Section 510(b) subordinated claims will receive no distribution.

Fred’s is a Memphis, Tenn.-based operator of discount general merchandise stores and specialty pharmacy-only locations. The company filed bankruptcy on Sept. 9 under Chapter 11 case number 19-11984.

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