Hancock Fabrics receives more time to solicit liquidation plan votes

By Caroline Salls

Pittsburgh, March 15 – Hancock Fabrics, Inc. obtained an extension of its exclusive periods for soliciting votes on a Chapter 11 plan, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, Hancock’s exclusive solicitation period was extended through May 12 from Feb. 3.

As previously reported, the company filed a plan of liquidation and related disclosure statement in December.

According to the motion, Hancock is now in active discussions with the official committee of unsecured creditors appointed in its case regarding the plan provisions.

“The debtors and the committee are working diligently on open issues regarding the terms of the plan under which the debtors will liquidate their estates, distribute the value obtained from these efforts to their various creditor constituencies and conclude these Chapter 11 cases,” the motion said.

The company said the extension will allow it to prepare an amended plan and “solicit support for what the debtors anticipate to be a consensual Chapter 11 liquidating plan in the near future.”

Based in Baldwyn, Miss., Hancock is a specialty retailer of fabric and related home sewing and decorative accessories. The company filed for bankruptcy on Feb. 2, 2016 under Chapter 11 case number 16-10296.

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