Bombay plan of liquidation approved

By Jennifer Lanning Drey

Portland, Ore., Aug. 20 - Bombay Co., Inc. obtained court approval for its plan of liquidation Wednesday from the U.S. Bankruptcy Court for the Northern District of Texas, according to an attorney.

As previously reported, Bombay's plan was filed in conjunction with its official committee of unsecured creditors, and the company has already sold a majority of its assets.

All assets remaining on the plan effective date will be transferred to a liquidating trust for distribution to creditors and to fund a wind-down reserve.

Creditor treatment

Treatment of creditors under the plan will include:

• Holders of administrative expense claims, priority non-tax claims and priority tax claims will recover 100% in cash;

• Holders of secured claims will receive either proceeds of the sale of the collateral securing their claims or return of the collateral securing the claims;

• Holders of general unsecured claims will receive a beneficial interest in a liquidating trust to be established under the plan, which will entitle these creditors to a share of any cash distribution from a distribution fund; and

• Holders of subordinated claims, intercompany claims and interests will receive no distribution under the plan.

Bombay, a Fort Worth, Texas-based designer, importer and marketer of proprietary home furnishings, filed for bankruptcy on Sept. 20, 2007. Its Chapter 11 case number is 07-44084.

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