Former Rockport disclosure statement approved; plan hearing Nov. 28

By Caroline Salls

Pittsburgh, Oct. 17 – Relay Shoe Co., LLC, formerly Rockport Co., LLC, obtained court approval of the disclosure statement for its plan of liquidation, allowing it to solicit votes on the plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Nov. 28.

The plan calls for the creation of a liquidating trust for the benefit of the holders of allowed claims against the U.S. debtors and the establishment of the Rockport Canada Fund from which distributions will be made to holders of claims against the Rockport Canada debtor.

Administrative claims, priority tax claims and other priority claims will be paid in full in cash.

Holders of “other” secured claims will either be paid in full in cash or receive the collateral securing the claims.

Holders of pre-bankruptcy note secured claims against the U.S. debtors will receive a share of remaining cash after funding of a fee escrow, expense and wind-down reserves and the Rockport Canada Fund, and a share of warrants.

Holders of general unsecured claims against the U.S. debtors will receive a beneficial interest in the liquidating trust. Rockport Canada general unsecured creditors will receive a share of the Rockport Canada Fund.

Holders of pre-bankruptcy note deficiency claims will receive a share of U.S. litigation proceeds and a share of liquidating trust assets to the extent distributions to holders of general unsecured claims exceed a specified threshold.

Holders of equity interests against the U.S. debtors will receive no distribution.

To the extent that funds remain in the Rockport Canada Fund following payment of senior claims, those funds will be transferred to the liquidating trust for holders of allowed Rockport Canada equity interests. Since no funds are expected to be transferred, these interests will be canceled.

Rockport, a West Newton, Mass.-based footwear company, filed bankruptcy on May 14. The Chapter 11 case number is 18-11145.

© 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.