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Value City: bankruptcy court confirms company's plan of liquidation
By Lisa Kerner
Charlotte, N.C., May 13 - Value City Holdings, Inc. plan of liquidation was confirmed by the U.S. Bankruptcy Court for the Southern District of New York at a hearing on Thursday, according to an attorney familiar with the case.
Value City said previously it completed its going-out-of-business sales and liquidated the inventory and tangible assets of its other 66 stores.
As previously reported, treatment of creditors will include:
• Holders of administrative expense claims, priority tax claims, priority non-tax claims, VCHI Acquisition general unsecured claims and other secured claims will be paid in full in cash;
• Holders of insurance claims will recover 100% in cash from insurance proceeds funded by third parties. Insurance claims not covered under the proceeds will be treated as general unsecured claims;
• Holders of VCHI Acquisition equity interests will retain their interests and will be entitled to the residual value of VCHI Acquisition Co. after VCHI Acquisition general unsecured claims have been paid;
• Holders of general unsecured claims will receive a share of cash from a claims distribution fund;
• Holders of equity interests in Value City and other interests will receive no distribution; and
• Equity interests in operating debtors other than Value City will remain in place to maintain the existing corporate structure of the debtors and liquidating companies.
Value City, a Columbus, Ohio, off-price retailer, filed for bankruptcy on Oct. 26, 2008. Its Chapter 11 case number is 08-14197.
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