Quaker Fabric disclosure statement approved; plan confirmation hearing Aug. 27

By Jennifer Lanning Drey

Portland, Ore., July 17 - Quaker Fabric Corp. obtained court approval for the disclosure statement for its plan of liquidation Thursday from the U.S. Bankruptcy Court for the District of Delaware, according to a source familiar with the case.

The plan confirmation hearing is scheduled for Aug. 27.

As previously reported, the company filed the plan together with its official committee of unsecured creditors.

After the plan takes effect, the company will be managed by a liquidating agent who will be responsible for winding Quaker Fabric's affairs, liquidating its remaining assets, administering plan distributions and enforcing and prosecuting claims.

The company said in the disclosure statement that it expects to have $452,000 in cash and $4.3 million in uncollected accounts receivable on the plan effective date.

Creditor treatment

Treatment of creditors under the plan will include:

• Holders of priority claims will receive full payment in cash;

• Holders of secured claims will receive either full payment in cash or the return of the collateral securing the claim;

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

• Holders of equity interests will receive no distribution under plan.

Quaker Fabric, a Fall River, Mass., designer, manufacturer and marketer of woven upholstery fabrics for residential furniture, filed for bankruptcy on Aug. 16, 2007. Its Chapter 11 case number is 07-11146.

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