Home Interiors & Gifts' plan of liquidation effective June 11

By Jennifer Lanning Drey

Portland, Ore., June 14 - Home Interiors & Gifts, Inc.'s plan of liquidation took effect on June 11, according to a Monday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, Home Interiors' plan of liquidation was approved by the court on May 28.

Treatment of creditors will include:

• Group One lenders will retain their liens on all remaining collateral securing their claims, and the creditor trust trustee will pay 79.92% of the proceeds from the collection of any collateral to the lender agent;

• Group Two lenders, or non-Highland lenders, will continue to receive any proceeds from the liquidation of collateral;

• Holders of Group Two lender deficiency claims will share the general unsecured claim distribution after general unsecured creditors have received $3.5 million;

• General unsecured creditors will share in class 5 cause of action proceeds; and

• The rights of equity interest holders will be extinguished.

Home Interiors & Gifts is a Dallas-based integrated manufacturer and distributor of home decorative accessories. The company filed for bankruptcy on April 29, 2008. Its Chapter 11 case number is 08-31961.

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