BTWW Retail's plan of liquidation is granted confirmation by court

By Lisa Kerner

Charlotte, N.C., Feb. 2 - BTWW Retail, LP's plan of liquidation was confirmed by the U.S. Bankruptcy Court for the Northern District of Texas at a hearing on Tuesday, according to an attorney familiar with the case.

As previously reported, the company said it had $1.6 million in cash, as well as $300,000 in Kestrel settlement funds, $250,000 in Wells Fargo settlement funds and $190,000 of excess funds in a restricted account.

These amounts will be distributed to creditors under the liquidation plan, except the Wells Fargo settlement fund amount. The Wells Fargo amount will be used to pay fees and expenses related to litigation of causes of action.

Treatment of creditors will include:

• Holders of administrative claims, priority tax claims and priority non-tax claims will recover 100% in cash;

• Holders of secured claims will receive either the net proceeds from the sale of the collateral securing the claim or the return of that collateral, at the company's option;

• Holders of general unsecured claims will recover roughly 4% through a share of any cash from a distribution fund; and

• Holders of subordinated claims, intercompany claims and interests will receive no distribution.

Dallas-based BTWW, the largest retailer of western wear and accessories in the United States, filed for bankruptcy on Nov. 3, 2008. Its Chapter 11 case number is 08-35725.

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