Big M requests case dismissal; sale proceeds not enough to pay claims

By Caroline Salls

Pittsburgh, April 24 – Big M, Inc. asked the U.S. Bankruptcy Court for the District of New Jersey to dismiss its Chapter 11 case, according to a motion filed April 24.

Big M said the proceeds from the sale of substantially all of its assets and subsequent residual asset sales allowed it to fully satisfy debtor-in-possession lender claims.

However, the company said the consideration ultimately received for the assets is not enough to pay administrative claims or estate professional fees in full or provide for a distribution to pre-bankruptcy general unsecured creditors.

As a result, Big M said it does not have sufficient funds to propose and confirm a Chapter 11 plan.

In exchange for obtaining an immediate payment of a larger percentage of roughly 73% of their post-bankruptcy administrative expense claims than will be paid to estate professionals on account of their professional fees, the company said several of its largest administrative creditors agreed to waive any right to seek additional payment from Big M.

A hearing is scheduled for May 19.

Big M, a Totowa, N.J.-based women’s clothing chain owner, filed for bankruptcy on Jan. 7, 2013. Its Chapter 11 case number is 13-10233.

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