Rowe details plan recovery estimates; disclosure hearing postponed

By Caroline Salls

Pittsburgh, Sept. 7 - The Rowe Cos. filed an amended plan of reorganization and related disclosure statement Thursday with the U.S. Bankruptcy Court for the Eastern District of Virginia that details claim amount and creditor recovery estimates.

As a result, the hearing on approval of the disclosure statement has been postponed to Sept. 12 from Sept. 7.

Under the plan, Rowe will establish a liquidating trust, which will be used to pay holders of allowed claims under the plan.

According to the disclosure statement, American Communications, LLC and Rowe Acquisition Corp. will wholly own reorganized Rowe by virtue of the 60,000 Rowe shares currently owned by Rowe Acquisition.

All other shares of Rowe's existing stock will be canceled.

The reorganized company will not engage in any operating business, and stock in the reorganized company will not be publicly traded.

According to the amended disclosure statement, the company will have roughly $290,000 available for distribution to creditors.

Rowe said in the amended disclosure statement that administrative claims should be reduced to $190,000 by the plan effective date, but if these claims exceed $190,000, the plan may not be confirmable.

Plan creditor treatment

Treatment of creditors under the plan will include:

• Holders of $190,000 in administrative claims will recover 100% in cash;

• Holders of $24,618 in priority claims will recover 100% in cash from the company's liquidating trust;

•Any funds remaining once all priority claims have been paid will be used to pay $916,299 in general unsecured claims, for an estimated recovery of 1.8%;

• All $13.34 million shares of Rowe's existing stock will be canceled, except for the 60,000 shares held by Rowe Acquisition, a nominee of American Communications. Holders of existing Rowe stock will receive no distribution under the plan.

The plan confirmation hearing is scheduled for Oct. 19.

Rowe, a McLean, Va.-based furniture company, filed for bankruptcy on Sept. 18, 2006. Its Chapter 11 case number is 06-11142.

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