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

Hampshire Group Disclosure Statement Approved, Plan Confirmed

The U.S. Bankruptcy Court approved Hampshire Group's Disclosure Statement and concurrently confirmed the First Amended Joint Chapter 11 Plan of Liquidation, proposed by the Company and its official committee of unsecured creditors. As previously reported, "The Plan contemplates the substantive consolidation of the Debtors' Estates into a single Estate for all purposes associated with Confirmation and Consummation. The Plan further provides for the establishment on the Effective Date of the Liquidation Trust for the primary purpose of administering and liquidating the Trust Assets and for the secondary purposes of, inter alia, (a) analyzing and pursuing Causes of Action; (b) resolving all Administrative Expense Claims, Professional Fee Claims, and Claims; and (c) making all Distributions provided for under the terms of the Plan. The Liquidation Trust shall be under the direction and control of the Liquidation Trustee, as trustee of the Liquidation Trust, subject to the terms of the Plan and the Liquidation Trust Agreement....On or as soon as practicable after the Effective Date, after the Liquidation Trustee has funded (i) the initial $250,000 of the Post-Effective Date Trust Expense Reserve and (ii) the 401(k) Plan Termination Reserve, the Liquidation Trustee will distribute, on a Pro Rata basis, the Distributable Cash by (a) making Pro Rata Distributions of Cash to each Holder of an Allowed Administrative Expense Claim and (b) funding a Plan Reserve in Cash for all Disputed Administrative Expense Claims the aggregate amount of which equals the sum of (y) the Pro Rata Distribution calculated based upon the undisputed amount, if any, of each Disputed Administrative Expense Claim, after taking into account any claims, rights, or defenses of the Debtors, their Estates, or the Liquidation Trust, and (z) the Liquidation Trustee's good faith estimate of a sufficient amount to satisfy the disputed amount of each Disputed Administrative Expense Claim." This clothing manufacturer filed for Chapter 11 protection on November 23, 2016, listing $44 million in pre-petition assets. Visit BankruptcyData for a detailed Plan Summary.

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