MC Sports announces Sept. 19 effective date for plan of liquidation

By Caroline Salls

Pittsburgh, Sept. 21 – Michigan Sporting Goods Distributors, Inc., which does business as MC Sports, said in a notice filed Thursday with the U.S. Bankruptcy Court for the Western District of Michigan that its plan of liquidation took effect on Tuesday.

The plan was confirmed on Sept. 8.

As previously reported, the official committee of unsecured creditors appointed in MC Sports’ case is a joint proponent of the plan.

“Debtor has completed the liquidation of its business operations, carefully managing expenses throughout the process,” according to the plan.

“Debtor anticipates all allowed administrative expenses to be paid in full and anticipates an aggregate approximate recovery of $400,000 for unsecured creditors.”

A total of $2.39 million in cash is expected to be available for distribution under the plan, as well as proceeds from sales of intellectual property and a credit card claim.

Under the plan, administrative claims, priority claims and priority tax claims will be paid in full.

Holders of general unsecured claims will receive a release from avoidance action liability and, on the later of a specified distribution date and the date that administrative and priority claims are paid in full, a share of an unsecured creditors’ fund.

All interests will be canceled, and holders will receive no distribution.

The Grand Rapids, Mich.-based sporting goods retailer filed for bankruptcy on Feb. 14, 2017 under Chapter 11 case number 17-00612.

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