Hancock Fabrics filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances through and including June 30, 2017.
The motion explains, “The Debtors are mindful of this Court’s guidance to all parties in interest that the Plan process proceed without delay. Consistent with this guidance, and as discussed below, the Debtors are seeking this brief extension of the Exclusive Solicitation Period purely in an abundance of caution as a result of developments during the Disclosure Statement approval process…Plan solicitation is underway and the Debtors believe that the Plan process is presently proceeding on a consensual basis.”
In addition, “However, it has been asserted that a competing plan potentially might be filed. A competing plan process would delay confirmation of the Plan, prolonging the above-captioned chapter 11 cases and materially diminishing recovery for creditors. Therefore, the Debtors request a short extension of their exclusive right to solicit votes on a chapter 11 plan of liquidation to permit the current solicitation process to be completed and the Plan Confirmation Hearing to be held as scheduled.”
The Court scheduled a June 12, 2017 hearing on the motion, with objections due by May 25, 2017.
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