Peekay Boutiques’ Joint Plan of Liquidation became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on November 15, 2017. BankruptcyData’s detailed Plan Summary notes, ” The Plan provides for the liquidation and sale of substantially all of the Debtor’s Assets to the Buyer, subject in all respects to high and better offers pursuant to the Bid Procedures, under Bankruptcy Code section 363 pursuant to the Asset Purchase Agreement, dated August 9, 2017 between the Debtors and TLA Acquisition, Inc.”
BankruptcyData’s Plan Summary continues, “The Liquidation Analysis for the Debtors state that the Seller Note Claims and Trade Vendor Claims will receive no distribution from the Debtors’ Estates. Pursuant to the Global Settlement the Trade Creditors and the Seller Noteholders need to meet certain requirements to obtain such notes, including executing releases, and the Trade Vendors providing certain credit terms. These recoveries to holders of Trade Vendor & Seller Note Claims would otherwise be unavailable in a Chapter 7 liquidation.”
This specialty retailer filed for Chapter 11 protection on August 10, 2017, listing $8.6 million in pre-petition assets.
Read more bankruptcy news.