Former Anchor Blue Retail Group files Chapter 11 plan of liquidation

By Caroline Salls

Pittsburgh, Nov. 29 - Hub Holding Corp., formerly Anchor Blue Retail Group, filed its plan of liquidation and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

A liquidating trust will be established under the plan to make distributions.

Treatment of creditors will include:

• Holders of administrative expense claims, priority non-tax claims and priority tax claims will be paid in full in cash;

• To the extent that holders of Wachovia secured lender claims have not been paid before the plan effective date, they will be paid in accordance with a global claim settlement;

• To the extent that holders of Ableco claims have not been paid before the plan effective date, they will receive a share of a liquidating trust fund on account of their unsecured claim for an estimated 2% to 4% recovery;

• Holders of other secured claims will either receive the collateral securing their claims or cash equal to the value of the collateral;

• Holders of general unsecured claims will receive a share of the liquidating trust fund, for an estimated recovery of 2% to 4%; and

• Interest holders will receive no distribution.

The disclosure statement hearing is scheduled for Jan. 10.

Anchor Blue, an Ontario, Calif., holding company for its Anchor Blue Division and Levi's & Dockers Outlet by MOST Division subsidiaries, filed for bankruptcy on April 27, 2009. The Chapter 11 case number is 09-11770.

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