Goody's files liquidation plan to distribute asset sale proceeds

By Caroline Salls

Pittsburgh, Nov. 25 - Goody's, LLC filed its plan of liquidation and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement, Goody's used the proceeds from its store-closing sales to repay its pre-bankruptcy debt, then worked to liquidate its remaining assets.

The proceeds of that liquidation will be used to fund plan distributions.

The company said it has generated more than $119 million from monetizing and disposing of its assets, which it has used to pay for administration of its estate and to make a $10.25 million settlement payment.

Goody's said it currently has roughly $7 million of cash on hand.

Treatment of creditors will include:

• Holders of priority claims will be paid in full in cash;

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

• Holders of unsecured claims will receive a share of any cash distributions from estate assets; and

• Holders of equity interests will receive no distribution.

Goody's, a Knoxville, Tenn., family apparel retailer, filed for bankruptcy on Jan. 13, 2009. Its Chapter 11 case number is 09-10124.

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