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Tweeter Home Entertainment Group Plan Filed

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Tweeter Home Entertainment Group filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan of Liquidation and its related Disclosure Statement. According to the Disclosure Statement, “The Plan is the result of ongoing negotiations with a number of creditors and creditor representatives. The Plan provides for the orderly liquidation of the Debtors, because substantially all of their operating assets were sold as part of the Sale. There are eight (8) distinct legal entities that are being liquidated pursuant to the Plan. For the purposes of effectuating the Plan, including for purposes of voting, confirmation and distributions to be made under the Plan, the Debtors seek authority under section 105 of the Bankruptcy Code consolidating the Debtors solely with respect to Creditors who hold Administrative Claims, Priority Claims, Non-Tax Priority Claims and Class 3 General Unsecured Claims…. This Plan contemplates the liquidation of the Debtors’ assets and the resolution of the outstanding Claims against and interests in the Debtors…. The Plan is a liquidating plan. Pursuant to prior orders of the Bankruptcy Court, the Debtors have sold substantially all of their assets. The Plan provides for the distribution of certain proceeds from such sale and the creation of a liquidating trust that will administer and liquidate all remaining property of the Debtors, including Causes of Action, not sold, transferred or otherwise waived or released on or before the Effective Date of this Plan. The Plan also provides for distribution to certain Holders of Administrative Expense Claims and Priority Claims and the funding of the Liquidating Trust. The Plan further provides for the termination of all Interests in the Debtors, the dissolution and wind–up of the affairs of the Debtors, and the issuance of New Common Stock to the Liquidating Trust.”

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