Former Furniture Brands plan of liquidation takes effect on August 1

By Kali Hays

New York, Aug. 1 – The Chapter 11 plan of liquidation of FBI Wind Down, Inc., formerly Furniture Brands International, Inc., is effective as of Aug. 1, according to a Friday notice with the U.S. Bankruptcy Court for the District of Delaware.

FBI’s director and responsible officer, Meredith M. Graham, is no longer with the company as of the effective date, according to an 8-K filed Friday with the Securities and Exchange Commission.

With the plan in effect, all of the company’s existing shares of common stock are cancelled without consideration and have no value.

As previously reported, the plan received court confirmation on July 14 and 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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