Former Loehmann's files plan of liquidation and disclosure statement

By Caroline Salls

Pittsburgh, April 21 - LHI Liquidation Co. Inc., formerly Loehmann's Holdings Inc., filed a plan of liquidation and related disclosure statement on April 21 with the U.S. Bankruptcy Court for the Southern District of New York.

On the plan effective date, LHI will transfer specified assets and funds to a litigation trust and all of its other remaining assets to a disbursing agent.

The litigation trust assets will be liquidated by the trust.

Treatment of creditors will include the following:

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

• Miscellaneous secured claims will either be paid in full in cash or the collateral securing the claim will be returned;

• Pre-bankruptcy first-priority credit facility claims were paid in full during the Chapter 11 proceedings. As a result, these creditors will receive no further distribution under the plan;

• Holders of post-bankruptcy second-priority credit agreement claims will receive a share of pre-bankruptcy second-priority lender cash and litigation trust interests;

• Holders of pre-bankruptcy third-priority credit agreement claims, equity interests and intercompany claims will receive no distribution; and

• Holders of general unsecured claims will receive a share of general unsecured claims cash, minus any fees and expenses of capped creditors committee professional fees and expenses, as well as general unsecured creditor litigation trust interests.

The disclosure statement hearing is scheduled for June 3.

Loehmann's, a Melville, N.Y.-based retailer of women's clothing, filed for bankruptcy on Dec. 15. The Chapter 11 case number is 13-14050.

© 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.