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Ultimate Electronics emerges from Chapter 11 bankruptcy as Liquidating Ultimate
By Caroline Salls
Pittsburgh, Jan. 11 - Ultimate Electronics Inc. emerged from Chapter 11 bankruptcy Wednesday when its plan of reorganization took effect, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.
The plan establishes a consolidated company for liquidation and gives unsecured creditors 1.5% to 5% recovery.
The company will continue to exist as Liquidating Ultimate solely to distribute all of the assets of the company's estates.
Plan administrator David A. Carter is the officer and director of Liquidating Ultimate.
All debtors were substantively consolidated into Liquidating Ultimate.
Under the plan, holders of $83 million in general unsecured claims will recover 1.5% to 5% in their share of the class four distribution, which will be funded by the proceeds from the sale of the company's Thornton, Colo., property, its $3.5 million junior subordinated promissory note issued April 20, 2005, proceeds from causes of action and available cash.
Holders of $0.3 million in debtor-in-possession claims will receive 100% recovery in cash.
Holders of old equity interests will receive no distribution under the plan.
Ultimate Electronics, a Thornton, Colo.-based consumer electronics retailer, filed for bankruptcy on Jan. 11, 2005. Its Chapter 11 case number is 05-10104.
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