US: Court confirms Syms, Filene's Basement chapter 11 plan
By Katie Smith | 31 August 2012
The US Bankruptcy Court for the District of Delaware has agreed a modified joint chapter 11 bankruptcy plan for Syms Corp and its subsidiary Filene's Basement.
The move comes after the court last month approved a disclosure statement for discount clothing retailers Syms and Filene's Basement, outlining their chapter 11 strategy.
Under the plan, Syms creditors will be paid in full and Filene's Basement creditors will receive recoveries from the company's assets.
Sym's, which will be reorganised as a new company, will dispose of its real estate assets over time. Majority shareholder Marcy Syms will sell her shares in the reorganised company and no longer control the firm.
The reorganised company will include three directors appointed by the equity committee, one director appointed by the creditors' committee, and one independent director.
In November 2011, it was announced that the Filene's Basement and Running of the Brides brands were to be auctioned as part of the liquidation of Syms and Filene's Basement.
Show the press release
Court Confirms Syms Corp and Filene’s Basement Joint Chapter 11 Plan
SECAUCUS, N.J.--( )--The U.S. Bankruptcy Court for the District of Delaware has confirmed the Modified Second Amended Joint Chapter 11 Plan of Reorganization of Syms Corp. (SYMSQ) and Its Subsidiaries.
Under the Plan, Syms creditors holding allowed claims are entitled to payment in full. The Plan also provides for Filene’s Basement creditors to receive recoveries from Syms’ assets. Filene’s trade creditors are entitled to payment in full on their allowed claims and Filene's landlords with allowed lease rejection claims are entitled to a recovery of 75% on their claims.
Upon the Effective Date of the Plan, Syms will be reorganized and Reorganized Syms will dispose of Syms' real estate assets over time to maximize their value for the benefit of creditors and shareholders. Pursuant to the terms of the Plan confirmed by the Bankruptcy Court, the current majority shareholder (Marcy Syms and entities with which she is affiliated) will sell all of her shares to Reorganized Syms on the Plan’s Effective Date and relinquish control of the company.
On the Effective Date, Reorganized Syms' initial new board of directors will be comprised of three directors appointed by the Equity Committee, one director appointed by the Creditors' Committee, and one independent director mutually chosen by the Equity Committee and the Creditors' Committee.
More information on the bankruptcy, as well as the Plan and Disclosure Statement, can be found at www.kccllc.net.
Original source: http://www.businesswire.com/news/home/20120830006445/en/Court-Confirms-Syms-Corp-Filene%E2%80%99s-Basement-Joint