ABC Carpet & Home statement approved; plan hearing set for March 3

By Sarah Lizee

Olympia, Wash., Jan. 28 – ABC Carpet Co., Inc., which does business as ABC Carpet & Home, received approval of the disclosure statement for its Chapter 11 plan of liquidation on Thursday, according to an order filed with the U.S. Bankruptcy Court for the Southern District of New York.

The plan confirmation hearing is scheduled for March 3.

According to the disclosure statement, the debtors and a liquidating trustee will fund distributions under the plan with cash on hand and all other liquidating trust assets.

Under the plan, holders of administrative expense claims, priority tax claims, professional fee claims and U.S. trustee statutory fees will be paid in full.

Holders of secured claims will receive payment in full in cash or the collateral securing their claims.

Holders of other priority claims will receive payment in full in cash.

Holders of general unsecured claims will receive their pro rata share of the liquidating trust primary recovery units.

Holders of subordinated claims will receive their pro rata share of the liquidating trust secondary recovery units.

Holders of intercompany claims will receive no distribution.

Interests in the debtors will be canceled with no distribution to holders.

The New York-based furniture retailer filed bankruptcy on Sept. 8 under Chapter 11 case number 21-11591.

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