Hancock Fabrics filed with the U.S. Bankruptcy Court a Second Amended Joint Chapter 11 Plan of Liquidation and related Disclosure statement.
According to the Disclosure Statement, “The Plan 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 winddown matters and Rights of Action. The Debtors and the Creditors’ Committee subject to Bankruptcy Court approval, are seeking to appoint Meta Advisors to serve as the Responsible Person. Meta is an affiliate of Kelley Drye and Warren LLP, counsel to Creditors’ Committee member DDR Corporation (and other creditors in the Chapter 11 Cases).”
In addition, “The Creditors’ Committee has agreed that Meta will retain Mr. Joseph Marchese, who has extensive experience with the Debtors’ operations, business records and financial matters prior to and during the Chapter 11 Cases, to serve as financial advisor to manage the winddown of the Estates.” The Court subsequently approved the Disclosure Statement and scheduled a June 12, 2017 hearing to consider the Plan. June 6, 2017 is the final date by which interested parties must file objections to the Plan.
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