Handy Hardware's second amended reorganization plan effective Aug. 5

By Jim Witters

WIlmington, Del., Aug. 6 - Handy Hardware Wholesale, Inc.'s second amended plan of reorganization became effective on Aug. 5, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed by the court on July 25.

The plan facilitates the sale of nearly all of Handy Hardware's assets to an affiliate of Littlejohn Management Holdings, LLC.

The plan also includes the settling of Capital One, NA's $25.8 million prepetition secured claim in exchange for Littlejohn leaving facilities in Meridian, Miss., and Houston for Capital One, debtors attorney Gregory A. Taylor said.

Capital One will lease the facilities to Littlejohn.

Creditor treatment

Treatment of creditors under the second amended plan includes:

• Administrative claims, priority non-tax claims and priority tax claims will be paid in full in cash from a Littlejohn contribution;

• The debtor-in-possession facility claim will be paid at the closing of the sale;

• Secured tax claims will be paid in full in cash;

• Holders of general unsecured claims will receive a share of cash equal to $4 million minus the amount necessary to pay non-tax priority claims in full and wind-down costs;

• Capital One will not have a general unsecured claim;

• Holders of Section 510(b) claims will receive no distribution; and

• All equity interests will be canceled, and members will receive no distribution.

Handy Hardware, a hardware retailer co-operative based in Houston, filed for bankruptcy on Jan. 11, 2013. Its Chapter 11 case number is 13-10060.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.