Copeland Sports' plan of liquidation approved

By Jennifer Lanning Drey

Portland, Ore., April 27 - Copeland Sports was granted court approval for its plan of liquidation Friday from the U.S. Bankruptcy Court for the District of Delaware, according to an attorney representing the company.

As previously reported, following the effective date of the plan, the company will exist to wind up its affairs and the liquidation of any remaining assets, as well as to enforce and prosecute claims and causes of action.

Treatment of creditors under the plan will include:

• Holders of priority tax claims and other priority claims will recover 100% in cash;

• Holders of subordinated note claims will recover 21% in either cash in a non-subordinated amount on the effective date or a cash payment up to the amount of the subordinated note balance if all priority claims have been paid in full;

• Holders of other secured claims will recover 100% either in cash plus interest or in the collateral securing the claim;

• Holders of general unsecured claims will recover 0.2% to 1.9% in cash, plus a share of any cash that becomes available after the initial distribution date; and

• Holders of equity interests will receive no distribution under the plan.

Copeland, a San Luis Obispo, Calif., regional specialty sporting goods retailer, filed for bankruptcy on Aug. 14, 2006. Its Chapter 11 case number is 06-10853.

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