Hancock Fabrics’ Second Amended Joint Chapter 11 Plan of Liquidation became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on June 20, 2017.
BankruptcyData’s detailed Plan Summary notes, “The Plan is a liquidating plan that provides that, among other things, the Debtors’ current Board of Directors will be succeeded by the Responsible Person, who will be appointed by order of the Bankruptcy Court to oversee the post-confirmation Estates and make judgments concerning wind down matters and Rights of Action.” BankruptcyData’s Plan Summary continues, “The Existing Stock and Interests will be cancelled. Each holder of an Interest or Securities Subordinated Claim will not receive anything on account of such Interest or Claim.”
As part of the Plan, the Hancock Fabrics’ board will be reconstituted on the effective date and will consist of Meta Advisors: the Court-appointed responsible person. Documents filed with the SEC note, “From and after the Effective Date, the Debtors shall continue to exist for the purpose of liquidating and winding up the Estates.”
The Debtors sold to Michaels Stores the rights to its brand, patents and trademarks for $1.3 million. The deal also includes all the customer information Hancock Fabrics had collected from more than 10 million customers.
Hancock Fabrics emerged from a previous Chapter 11 filing in August 2008. This fabric retailer initiated its most recent bankruptcy filing on February 2, 2016, listing $157 million in pre-petition assets.
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