Lenox's reorganization plan confirmed, disclosure statement approved

By Lisa Kerner

Charlotte, N.C., Dec. 16 - Lenox Group, Inc.'s plan of reorganization was confirmed and its disclosure statement was approved by the U.S. Bankruptcy Court for the Southern District of New York, according to an attorney close to the case.

As previously reported, according to the disclosure statement for the amended plan, which is a liquidating plan, the company has sold substantially all of its assets.

The amended plan provides for the appointment of a plan administrator to distribute Lenox's cash and all other remaining property, including a tax refund receivable and causes of action not sold, transferred or otherwise waived or released before the plan effective date.

Also, the amended plan eliminates separate classes for holders of revolving credit facility and term loan claims and adds a secured claims class.

Creditor treatment

Treatment of creditors will include:

• Holders of administrative claims, professional compensation and reimbursement claims, priority claims and secured claims will recover 100% in cash;

• Holders of general unsecured claims will recover 0.43% to 0.57% in cash; and

• Equity interest holders will receive no distribution.

The joint hearing on approval of the disclosure statement and confirmation of the amended plan was held Dec. 16.

Lenox, an Eden Prairie, Minn.-based tableware, collectibles and giftware products company, filed for bankruptcy on Nov. 23, 2008. Its Chapter 11 case number is 08-14679.

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