Bankruptcy News

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Bankruptcy/Chapter 11 / Retailing

Coldwater Creek Amended Plan Filed, Disclosure Statement Approved

Coldwater Creek filed with the U.S. Bankruptcy Court a Third Amended Plan of Liquidation and related Disclosure Statement. According to the documents filed with the Court, "This Plan incorporates a proposed compromise and settlement of potential litigation regarding certain issues, including, without limitation, the substantive consolidation of the Debtors' estates…and the resolution of outstanding Claims against, and Interests in, the Debtors. The classifications of Claims and Interests set forth in Article III hereof shall be deemed to apply to all Debtors, unless otherwise specified. This Plan provides for the liquidation and conversion of all of the Debtors' remaining assets to Cash and the Distribution of the net proceeds realized therefrom to creditors holding Allowed Claims in accordance with the relative priorities established in the Bankruptcy Code….The Debtors currently estimate that Holders of Allowed General Unsecured Claims in Class 3 will receive recoveries of approximately 10.5% of the amount of their Claims, Holders of Allowed Guaranteed Claims in Class 4 will receive recoveries of approximately 17.3% of the amount of their Claims, and Holders of Allowed Coldwater/Aspenwood Claims in Class 5 will receive recoveries of approximately 12.6% of the amount of their Claims. However, as described in the Risk Factors, the amount of creditor recoveries are not certain and may be materially higher or lower than described in this Disclosure Statement because, among other things, administrative expenses may be higher than expected and the value the Debtors or the Liquidating Trustee are able to obtain for unliquidated assets may be higher or lower than expected." The Court subsequently approved the Disclosure Statement and scheduled a September 17, 2014 hearing to consider the Plan. Objections must be filed by September 10, 2014.

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