Quaker Fabric emerges from bankruptcy

By Caroline Salls

Pittsburgh, Sept. 23 - Quaker Fabric Corp. emerged from Chapter 11 bankruptcy when its plan of liquidation took effect on Sept. 12, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Aug. 27.

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

Following the effective date, the company is being managed by a liquidating agent who will be responsible for winding down Quaker Fabric's affairs, liquidating its remaining assets, administering plan distributions and enforcing and prosecuting claims.

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 the 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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