Old Time Pottery Chapter 11 plan of reorganization confirmed by court

By Sarah Lizee

Olympia, Wash., Oct. 20 – Old Time Pottery, LLC’s Chapter 11 plan of reorganization was confirmed Thursday by the U.S. Bankruptcy Court for the Middle District of Tennessee.

As previously reported, the plan constitutes a comprehensive proposal that provides for the continuation of the Old Time Pottery debtors’ business and payment in full over time of all allowed claims.

“The plan is a significant achievement for the debtors in the wake of a historically challenging operating environment,” the disclosure statement said.

Debtor-in-possession financing claims, general administrative claims, administrative tax claims and other priority claims will be paid in full.

Secured and priority tax claims will be paid over a maximum five-year period.

Holders of other secured claims will either retain all liens on the claim until paid in full, have the claim be deemed unimpaired, be paid in full in cash or receive the collateral securing the claim.

Holders of unsecured convenience claims in an amount no greater than $2,000 will be paid in full in cash. Holders of these claims in an amount greater than $2,000 will receive $2,000.

Holders of general unsecured claims will have two treatment options. Under the first option, annual payments will be made beginning on March 1, 2021, and continuing on March 1 of each year until March 1, 2025, when all remaining amounts will be paid in full. Interest will accrue at a rate of 4%. Under the second option, claimants may elect to receive 60% of their claim amounts on March 1, 2021, up to a maximum of $25,000.

Ownership interests in the respective debtors will continue in the same amount as at the bankruptcy filing date.

Old Time Pottery is a Murfreesboro, Tenn.-based home decor retailer. The company filed bankruptcy on June 28 under Chapter 11 case number 20-03138.

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