Former Limited files plan of liquidation, seeks exclusivity extension

By Caroline Salls

Pittsburgh, Aug. 16 – LSC Wind Down, LLC, formerly Limited Stores Co., LLC, filed a plan of liquidation and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company sold substantially all of its remaining assets, which included intellectual property and related assets and inventory.

LSC said the net sale proceeds were used to pay the debtor-in-possession financing and pre-bankruptcy secured term loan claim in full.

The remaining proceeds and the collection and liquidation of remaining assets will be used to make payments, to the extent of available cash, under the plan.

According to the disclosure statement, holders of pre-bankruptcy revolving secured claims were also paid in full.

Liberty Mutual will receive a portion of the cash it holds to collateralize its secured claim, and the balance will be paid to the liquidating debtors or plan administrator.

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

Holders of priority WARN Act claims and priority non-tax claims will receive a share of cash after payment of senior claims.

Holders of general unsecured claims will receive a share of GUC trust interests.

Holders of interests and subordinated claims will receive no distribution.

Extension request

In addition, the company requested an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan through Nov. 10 and Dec. 15, respectively.

While it has sold substantially all of its assets, the company said it is still working to address issues between creditor constituencies and complete its wind down.

“Providing the debtors with additional time to retain control over the plan process will provide the necessary framework and efficiencies that are necessary in this instance,” the motion said.

The disclosure statement and exclusivity extension hearings are scheduled for Sept. 27.

Limited Stores is a New Albany, Ohio-based retailer of contemporary upscale branded women’s apparel. The company filed bankruptcy on Jan. 17 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 17-10124.

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