United Retail announces liquidation plan effective date of Oct. 3

By Jim Witters

Wilmington, Del., Oct. 4 - United Retail Group, Inc. announced effective date for its plan of liquidation is Oct. 3, according to documents filed Oct. 4 with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the company's plan was confirmed by the court on Sept. 18.

Treatment of creditors under the plan includes:

• Holders of administrative claims, priority tax claims and other priority claims will be paid in full in cash;

• Holders of secured claims will either be paid in full in cash, including any interest, reasonable fees, costs or charges required to be paid under section 506(b) of the Bankruptcy Code, or receive the collateral securing the claims, with the same interest and fee payment provision;

• Holders of general unsecured claims will receive their share of net available funds, which includes $2.75 million in unsecured claims funds plus any additional cash assets made available to the estates, minus any cash needed to fund reserves for higher priority claims; and

• Interests in United Retail Group, intercompany claims and intercompany interests will be canceled and holders will receive no distribution.

United Retail is a Rochelle Park, N.J., specialty retailer of large-size women's fashion apparel, footwear and accessories. The company filed for bankruptcy on Feb. 1, 2012 under Chapter 11 case number 12-10405.

© 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.