Gordmans Stores’ Joint Plan of Liquidation became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on October 18, 2017.
BankruptcyData’s detailed Plan Summary notes, “The Plan contemplates a liquidation of each of the Debtors and their Estates and is therefore referred to as a ‘plan of liquidation.’ The primary objective of the Plan is to maximize the value of recoveries to all Holders of Allowed Claims and Allowed Interests and to distribute all property of the Estates that is or becomes available for distribution generally in accordance with the priorities established by the Bankruptcy Code. The Debtors believe that the Plan accomplishes this objective and is in the best interest of the Estates and therefore seek to confirm the Plan.” BankruptcyData’s Plan Summary continues, “General Unsecured Claims will receive its pro rata share of cash from the Plan Administrator Assets available to satisfy the General Unsecured Claims, if the Allowed Class 4 Claim is held by a Holder that votes to accept the Plan, for a rate of recovery of 4.9% – 10.6%.”
This home goods and merchandise retailer filed for Chapter 11 protection on March 13, 2017, listing $23 million in pre-petition assets.
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