Hoop Holdings emerges from Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, Jan. 9 - Hoop Holdings, LLC's plan of liquidation took effect on Dec. 26, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Dec. 15.

As previously reported, the plan of reorganization provides for the estate assets of Hoop Holdings, its wholly owned retail subsidiary, and Canada Holdings to be placed in a liquidating trust, which will be overseen by a liquidating trustee.

Hoop's plan also includes a settlement with parent company, The Children's Place.

Under the settlement, The Children's Place will pay Hoop $4 million that was paid to it under a Disney asset purchase agreement and a lease associated with the headquarters.

Additionally, The Children's Place will release all pre-bankruptcy claims and post-bankruptcy administrative claims against Hoop.

In exchange, Hoop and its official committee of unsecured creditors will release all claims against The Children's Place.

The bankruptcy court approved the settlement in April 2008.

Creditor treatment

Creditor treatment includes:

• Holders of administrative claims will receive a full cash recovery;

• Holders of secured claims will, at the option of the liquidating trustee, have the full amount of their claim reinstated, receive a full cash recovery or receive the full amount of collateral securing the claim; and

• Holders of general unsecured claims will receive their share of distributable cash after priority claims and convenience claims have been paid, for an estimated 25% to 36% recovery.

Hoop, a Secaucus, N.J., company that designs, contracts to manufacture and sells merchandise under the Disney Store brand name, filed for bankruptcy on March 26, 2008. Hoop's Chapter 11 case number is 08-10544.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.