Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Consumer Durables & Apparel

Coldwater Creek Plan Filed

Coldwater Creek filed with the U.S. Bankruptcy Court a First Amended Chapter 11 Plan of Liquidation and related Disclosure Statement. According to the Disclosure Statement, “The Plan provides for the orderly and efficient resolution of the Debtors’ assets through chapter 11 liquidation. After months of declining sales and exploring numerous failed out-of court strategic alternatives, including asset sales and refinancing efforts, the Debtors have concluded that they are unable to reorganize on a stand-alone basis and that the best way to maximize value for the benefit of all interested parties is a prompt and orderly wind-down of their business. In order to liquidate their business as expeditiously as possible, upon the commencement of these Chapter 11 Cases, the Debtors sought authority to conduct ‘going out of business’ sales to liquidate their inventory. Since that time, the Debtors have commenced GOB Sales, sold their intellectual property assets, and are in the process of closing sales transactions related to their spa business and a portion of their corporate headquarters campus. The Plan provides for the liquidation and conversion of all of the Debtors’ remaining assets to cash and the distribution of the net proceeds realized from the assets to creditors holding Allowed Claims in accordance with the relative priorities established in the Bankruptcy Code. After payment in full in cash of the Term Loan Claims, the Plan contemplates the formation of a Liquidating Trust and appointment of a Liquidating Trustee upon the Effective Date to, among other things, resolves Disputed Claims, make distributions to Holders of Allowed General Unsecured Claims and close the Chapter 11 Cases.”

Read more Bankruptcy News