Gottschalks files plan of liquidation; exclusivity extension approved

By Caroline Salls

Pittsburgh, Dec. 4 - Gottschalks Inc. filed its plan of liquidation and related disclosure statement Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Under the plan, the company's current board of directors will be replaced by "responsible person" J. Gregory Ambro. Ambro will oversee the post-confirmation estate and make decisions on wind-down issues and rights of action.

Treatment of creditors will include:

• Holders of administrative claims, priority tax claims and other priority claims will be paid in full in cash;

• Holders of General Electric Capital Corp. pre-bankruptcy claims will either be paid in full in cash or receive treatment provided in the debtor-in-possession financing agreement;

• Holders of other secured claims will receive one or a combination of cash, the collateral securing the claim and the proceeds of the sale of that collateral;

• Holders of general unsecured claims will receive a share of available assets; and

• Holders of interests and securities subordinated claims will receive nothing.

In addition, Gottschalks obtained a three-month extension to its exclusive periods for filing a plan of reorganization and soliciting votes on the plan.

The company's exclusive filing period was extended to Feb. 19 from Nov. 16 and the solicitation period to April 16 from Jan. 15.

According to the motion, Gottschalks requested the extension out of an abundance of caution to make sure the periods stay intact during the vote solicitation process and in case the plan is not ultimately confirmed.

Gottschalks, a Fresno, Calif.-based regional department store chain, filed for bankruptcy on Jan. 13, 2009. Its Chapter 11 case number is 09-10157.

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