Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers B > Headlines for Borders Group, Inc. > News item |
Borders Group and creditors committee file joint plan of liquidation
By Caroline Salls
Pittsburgh, Oct. 4 - Borders Group, Inc. and its official committee of unsecured creditors filed a joint plan of liquidation and related disclosure statement Monday with the U.S. Bankruptcy Court for the Southern District of New York.
According to the disclosure statement, the purpose of the plan is to liquidate, collect and maximize the cash value of the company's remaining assets and make distributions to creditors from sale, claim and causes of action proceeds through creation of a liquidating trust.
Treatment of creditors will include:
• Holders of administrative claims, priority tax claims and priority non-tax claims will be paid in full in cash;
• Holders of secured claims will either be paid in full in cash or receive the collateral securing their claims;
• Holders of general unsecured claims will receive a share of liquidating trust assets remaining after payment of priority and administrative expense claims and liquidating trust expenses; and
• Holders of equity interests and intercompany claims will receive no distribution.
The disclosure statement hearing is scheduled for Nov. 10.
Borders, an Ann Arbor, Mich.-based specialty retailer of books and other educational and entertainment items, filed for bankruptcy on Feb. 16, 2011. The Chapter 11 case number is 11-10614.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.