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Pier 1 Imports U.S. Trustee objects to amended disclosure statement
By Caroline Salls
Pittsburgh, June 19 – The U.S. Trustee overseeing Pier 1 Imports, Inc.’s bankruptcy case objected to the disclosure statement for the company’s proposed amended Chapter 11 plan, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.
Acting Region 4 U.S. trustee John P. Fitzgerald III said in his objection that Pier 1 had to begin winding down its operations and close all of its stores.
As a result, Fitzgerald said the company has turned to a plan that incorporates the wind-down procedures recently approved by the court and provides that administrative claimants and priority claimants will not be paid in full.
Fitzgerald said the disclosure statement and plan should not dictate that a failure to cast a vote is deemed acceptance of the plan, given that the documents call for a process under which holders of some priority and administrative claims are deemed to consent to a reduced amount of their claims simply by abstaining from voting or failing to object to the plan.
In addition, the U.S. Trustee said the release of non-debtor third parties and exculpation provisions are overly broad.
Fitzgerald also said the plan documents call for the appointment of a plan administrator to administer the wind-down budget, a monitor to oversee compliance with that budget and a claims representative to oversee the claims reconciliation process and the prosecution of causes of action, but do not say why all three are necessary.
Pier 1 is a Fort Worth-based importer of home decor and furniture. The company filed bankruptcy on Feb. 17 under Chapter 11 case number 20-30805.
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