Lenox Group files amended plan; confirmation hearing set for Dec. 16

By Caroline Salls

Pittsburgh, Nov. 4 - Lenox Group, Inc. filed an amended plan of reorganization and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported in the original plan filed in December 2008, the proceeds from the sale of the company's assets were to be used to satisfy creditor claims through one of two scenarios.

Under the first scenario, if Lenox's term loan lenders were able to secure the appropriate financing, they would contribute their claims to a newly created entity to be called New Lenox that would credit bid the lenders' secured claim as part of a bid to acquire Lenox's assets.

Under the second scenario, the assets would be sold to a third-party buyer, and the sale will be completed before plan confirmation.

According to the disclosure statement for the amended plan, which is a liquidating plan, the company has sold substantially all of its assets.

The amended plan provides for the appointment of a plan administrator to distribute Lenox's cash and all other remaining property, including a tax refund receivable and causes of action not sold, transferred or otherwise waived or released before the plan effective date.

The amended plan eliminates separate classes for holders of revolving credit facility and term loan claims and adds a secured claims class.

Creditor treatment

Treatment of creditors will include:

• Holders of administrative claims, professional compensation and reimbursement claims, priority claims and secured claims will recover 100% in cash;

• Holders of general unsecured claims will recover 0.43% to 0.57% in cash; and

• Equity interest holders will receive no distribution.

A joint hearing on approval of the disclosure statement and confirmation of the amended plan is scheduled for Dec. 16.

Lenox, an Eden Prairie, Minn.-based tableware, collectibles and giftware products company, filed for bankruptcy on Nov. 23, 2008. Its Chapter 11 case number is 08-14679.

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