Former Furniture Brands plan distributes proceeds, settlement funds

By Caroline Salls

Pittsburgh, April 21 - FBI Wind Down, Inc., formerly Furniture Brands International, Inc., filed its plan of liquidation and related disclosure statement Monday with the U.S. Bankruptcy Court for the District of Delaware.

The company said its $280 million asset sale closed on Nov. 25.

The plan calls for the distribution of cash proceeds from the liquidation of the company's assets, including proceeds from the $280 million sale and sales of excluded residual assets.

In addition, the plan implements key provisions of a Pension Benefit Guaranty Corp. settlement, enhancing the funds available for distribution to specified creditors.

Under the plan, all of the estates' assets will vest in and be transferred to a liquidating trust. The trustee will liquidate the remaining assets, resolve any disputed claims, wind down the company's affairs, prosecute causes of action and make distributions.

Treatment of creditors will include the following:

Priority non-tax claims and secured tax claims will be paid in full in cash;

Holders of other secured claims will either be paid in full in cash or will receive the collateral securing the claims;

Holders of general unsecured claims will receive a share of distributable assets of the applicable debtor, and consenting creditors will receive an additional distribution under the PBGC settlement;

Holders of convenience claims will recover 8% to 16% in cash, depending on the debtor; and

Holders of equity interests and subordinated securities claims will receive no distribution.

The disclosure statement hearing is scheduled for May 29.

Furniture Brands, a St. Louis-based designer, manufacturer and retailer of home furnishings, filed for bankruptcy on Sept. 9, 2013. The Chapter 11 case number is 13-12329.

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