Strauss Discount Auto emerges from bankruptcy

By Caroline Salls

Pittsburgh, May 14 - Strauss Discount Auto emerged from Chapter 11 bankruptcy when its plan of reorganization took effect on May 8, according to a Friday filing with the U.S. Bankruptcy Court for the District of New Jersey.

The plan was confirmed on April 27.

As previously reported, the plan distributes the proceeds of a sale of substantially all the company's assets and any recoveries from avoidance actions and litigation filed against Monro Muffler Brake, Inc., according to the company's disclosure statement.

The new company is being capitalized by a $10 million cash infusion.

Creditor treatment

Treatment of creditors under the plan will include:

• Holders of Kimco secured claims will be paid in full on the effective date;

• Holders of other secured claims will, at the company's option, have their claim reinstated, receive full cash payment or receive the collateral securing their claims;

• Holders of unsecured claims will be paid in full, without interest, in four annual installments, with 10% to be paid 90 days after the effective date; 20% on the first anniversary of the effective date; 30% on the second anniversary of the effective date; and 40% on the third anniversary of the effective date;

• Intercompany claims will be canceled; and

• Interest holders will retain their interests.

Strauss, a South River, N.J.-based auto parts retailer, filed for bankruptcy on Aug. 10, 2006. Its Chapter 11 case number is 06-17475.

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