Mervyn's Holdings, creditors committee file joint plan of liquidation

By Caroline Salls

Pittsburgh, Dec. 21 - Mervyn's Holdings, LLC and its official committee of unsecured creditors filed a joint plan of liquidation and related disclosure statement Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The company and committee said the purpose of the plan is to provide for the liquidation and conversion of all of Mervyn's remaining assets to cash and the distribution of the net proceeds to creditors.

A plan administrator will be appointed to resolve disputed claims, implement the plan terms and make distributions.

Treatment of creditors will include the following:

• Debtor-in-possession facility claims were previously paid in full in cash;

• Administrative claims, secured tax claims, priority tax claims and other priority claims will be paid in full in cash;

• Other secured claims will either be reinstated, holders will be paid in full in cash or holders will receive the collateral securing the claims;

• Holders of general unsecured claims will receive a share of distributions made by the plan administrator; and

• Holders of equity interests will receive no distributions.

The disclosure statement hearing is scheduled for Jan. 28.

Mervyn's, a San Francisco-based department store, filed for bankruptcy on July 29, 2008. Its Chapter 11 case number is 08-11586.

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