Former Furniture Brands liquidation plan OK’d by bankruptcy court

By Caroline Salls

Pittsburgh, July 14 – FBI Wind Down, Inc., formerly Furniture Brands International, Inc., obtained confirmation of its plan of liquidation, according to a Monday order with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company said its $280 million asset sale closed on Nov. 25, 2013.

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 from 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. Alan D. Halperin was appointed as liquidating trustee.

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 receive cash, with the total recovery amount depending on the debtor against which the claim was filed; and

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

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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