Former Urban Brands gets extension for soliciting plan acceptances

By Jim Witters

Wilmington, Del., Aug. 8 - UBI Liquidating Corp., formerly Urban Brands, Inc., received an extension of its exclusive period for soliciting acceptances of its liquidation, according to documents filed Monday in U.S. Bankruptcy Court for the District of Delaware.

Judge Kevin J. Carey extended the Aug. 19 deadline through Sept. 19.

Under the plan filed July 21, a liquidating trust will be established to make payments to creditors, resolve disputed claims and prosecute causes of action.

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;

• Bank of America secured lender claims will be paid in full during the bankruptcy case. However, to the extent it has not already been paid before the plan effective date, Bank of America will be paid any outstanding claim amounts under the plan;

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

• Holders of general unsecured claims will receive a share of a liquidating trust fund through one or more distributions; and

• Holders of equity interests will receive no distribution.

Urban Brands, a Secaucus, N.J.-based plus-sized apparel retailer, filed for bankruptcy on Sept. 21, 2010. Its Chapter 11 case number is 10-13005.

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