Wickes emerges from Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, Dec. 21 - Wickes, Inc. emerged from Chapter 11 bankruptcy when its plan of liquidation took effect on Dec. 18, according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The plan was confirmed on Dec. 12.

Under the plan, proceeds from the liquidation of Wickes' remaining assets, including litigation proceeds, which will be distributed to creditors.

A liquidating trust was established on the plan effective date, and the trustee will be responsible for liquidating the company's remaining assets and making distributions to creditors from cash on hand, the liquidation proceeds and litigation proceeds.

Treatment of creditors under the plan will include:

• Holders of $2.1 million in secured claims will recover 100% in either cash or the return of the collateral securing the claim;

• Holders of $10,376 in other priority claims will recover 100% in cash;

• Holders of $2.42 million in convenience claims will recover 15% in cash, with a maximum distribution of $750 and a minimum distribution of $15.00;

• Holders of $434.56 million in tort claims will not receive any distribution under the plan, but the company will lift any injunctions that keep these creditors from seeking any applicable insurance proceeds. In addition, $100,000 will be held in escrow for these claimants to cover any shortfalls in insurance proceeds;

• Holders of $37 million to $46.5 million in general unsecured claims will recover 10% in cash, plus additional net recoveries from litigation claims; and

• Interest holders will receive no distribution under the plan.

Wickes, a Vernon Hills, Ill.-based supplier of building materials, filed for bankruptcy on Jan. 20, 2004. Its Chapter 11 case number is 04-02221.

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