Gander Mountain disclosure approved; exclusivity extension requested

By Caroline Salls

Pittsburgh, Dec. 7 – Gander Mountain Co. obtained court approval of the disclosure statement for its plan of liquidation, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Minnesota.

The plan confirmation hearing is scheduled for Jan. 25.

According to the disclosure statement, the plan establishes a liquidating trust. Some members of the existing creditors’ committee will comprise a liquidating trust advisory committee, which will appoint a trustee to resolve claims, pursue avoidance claims that were not sold to CWI, Inc. and causes of action, make distributions to creditors and take other actions necessary to wind down the company’s businesses and distribute the trust assets.

Allowed claims will be paid from cash on hand, the net proceeds of asset sales and any net recoveries from causes of action.

Administrative claims, priority tax claims and other priority claims will be paid in full.

Holders of secured claims will either receive cash or the collateral securing the claim.

Holders of convenience claims will receive a one-time payment of the lesser of $5 or the amount of the claim.

Holders of general unsecured claims will receive a share of liquidating trust interests unless paid before the plan effective date or the holder elects to have its claim classified as a convenience claim.

Holders of equity interests will receive no distribution.

Also on Thursday, Gander Mountain requested an extension through March 31 of its exclusive period for soliciting votes on a Chapter 11 plan.

Because the voting deadline is set for Jan. 22 and the plan confirmation hearing for Jan. 25, Gander Mountain said the exclusive solicitation period would extend beyond the current Dec. 31 expiration date.

“Given the status of the plan and the remaining steps in the plan process, more time is needed for the debtors to solicit and obtain acceptances of the plan,” the motion said.

A hearing on the extension motion is scheduled for Dec. 21.

Gander Mountain is a St. Paul, Minn.-based retail network of stores for hunting, fishing, boating, camping, marine and outdoor lifestyle products and services. The company filed for bankruptcy on March 10, 2017 under Chapter 11 case number 17-30673.

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