Former Hartmarx files plan of liquidation; statement hearing April 3

By Caroline Salls

Pittsburgh, March 4 - HMX Corp. 1, formerly known as Hartmarx Corp., filed its plan of liquidation and related disclosure statement March 4 with the U.S. Bankruptcy Court for the Northern District of Illinois.

The plan calls for the liquidation of the company's assets and the distribution of the net proceeds to creditors.

Treatment of creditors will include the following:

• Holders of secured claims and non-tax priority claims will receive full recovery of their claims;

• Holders of general unsecured claims will receive a share of unsecured claim distribution rights for an estimated 0.04% to 0.5% recovery;

• Holders of subordinated claims will receive no distribution; and

• Old equity and affiliate interests will be cancelled, and holders will receive no distribution.

The disclosure statement hearing is scheduled for April 3.

Hartmarx, a Chicago-based producer and marketer of business, casual and golf apparel, filed for bankruptcy on Jan. 23, 2009. Its Chapter 11 case number is 09-02046.

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