Coldwater Creek wins confirmation of third amended liquidation plan

By Kali Hays

New York, Sept. 17 – Coldwater Creek Inc. obtained confirmation of a third amended joint plan of liquidation Sept. 17 with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company entered into a global settlement in July resolving issues raised by its official committee of unsecured creditors regarding the Chapter 11 plan, term loan lenders’ claims and security interests and potential claims and/or causes of action against the term loan lenders and Coldwater’s officers and directors.

Coldwater agreed to amend the plan to reflect the settlement and said that the economic value of the settlement to unsecured creditors is estimated to be $5.36 million more than would otherwise be available for distribution to them.

As a result of the settlement, the term loan lenders’ claims were reduced by $4.4 million to $90.74 million and paid in full in cash on July 23, according to the amended disclosure statement.

The third amended plan still calls for the liquidation and conversion of all of the Coldwater Creek debtors’ remaining assets to cash and the distribution of the net proceeds realized from the assets to creditors.

After payment in full in cash of administrative claims, priority tax claims, priority non-tax claims and other secured claims, a liquidating trust will be formed and a trustee appointed to resolve disputed claims, implement the plan, make distributions to remaining creditors, investigate and prosecute claims and causes of action not released by the plan and close the Chapter 11 cases.

Treatment of creditors under the amended plan will include the following:

• Holders of non-priority tax claims and administrative claims will be paid in full in cash;

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

• Holders of general unsecured claims, guaranteed claims and Coldwater/Aspenwood claims will receive a share of liquidating trust interests;

• Holders of intercompany claims and company interest will receive no distribution; and

• Holders of term loan claims, debtor-in-possession facility claims and ABL claims shall not receive any further distribution.

A confirmation hearing is scheduled for Sept. 17.

Based in Sandpoint, Idaho, Coldwater Creek is a specialty retailer of women's apparel, gifts, jewelry and accessories. The company filed for bankruptcy on April 11 under Chapter 11 case number 14-10867.

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