Former Angelica: Committee agrees to dismissal of confirmation appeal

By Caroline Salls

Pittsburgh, Sept. 19 – RFID Corp., formerly Angelica Corp., reached an agreement with the official committee of unsecured creditors appointed for its bankruptcy case and TCP Clothesline SPV LLC that resolves the committee’s appeal of the court order confirming the company’s Chapter 11 plan, according to a status report filed with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, RFID’s third amended plan was confirmed on Aug. 30.

Leading up to and following entry of the confirmation order, the company said it was coordinating with the committee and the plan administrator to begin the process of analyzing and reconciling the outstanding claims and preparing for the transition of the RFID debtors’ estates to the plan administrator on the effective date.

However, the company said “those efforts stalled on Sept. 6, 2017 when the creditors’ committee filed a notice of appeal.”

When a court order is entered approving the stipulation, RFID said the appeal parties will dismiss the appeal with prejudice.

Also under the stipulation, RFID and TCP will each contribute $25,000 to a creditor distribution fund, thereby increasing the total funding to the plan administrator or creditor recovery trust on the plan effective date to $1.45 million.

RFID said the plan is expected to take effect shortly after the stipulation is approved and the transfer of control of the estates to the plan administrator, the report said.

The stipulation was scheduled to be presented to the court for approval on Tuesday. As of late Tuesday, no order had been entered.

Angelica is a St. Louis-based provider of outsourced linen management services to the health care industry. The company filed bankruptcy on April 3 under Chapter 11 case number 17-10870.

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