United Retail Group plan of liquidation confirmed by bankruptcy court

By Caroline Salls

Pittsburgh, Sept. 18 - United Retail Group, Inc.'s plan of liquidation was confirmed Tuesday by the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the company made changes to the plan in July to address concerns raised by the court in a previous order.

In a July 20 order denying approval of the previous version of the disclosure statement for the plan, the court said class 2 allowed secured claims were incorrectly described as unimpaired and not entitled to vote.

In the amended documents, class 2 is designated as impaired and entitled to vote and a proposed form of ballot for that class was included in a revised solicitation procedures order.

Treatment of creditors under the plan will include the following:

• 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.

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