Court Confirms Syms, Filene’s Basement Joint Chapter 11 Plan
The U.S. Bankruptcy Court for the District of Delaware has confirmed the modified second amended joint Chapter 11 Plan of Reorganization of Syms Corp. and its subsidiaries.
Under the plan, Syms creditors holding allowed claims are entitled to payment in full. The plan also provides for Filene’s Basement creditors to receive recoveries from Syms’ assets. Filene’s trade creditors are entitled to payment in full on their allowed claims and Filene’s landlords with allowed lease rejection claims are entitled to a recovery of 75% on their claims.
Upon the effective date of the plan, Syms will be reorganized and it will dispose of Syms’ real estate assets over time to maximize their value for the benefit of creditors and shareholders. Pursuant to the terms of the plan confirmed by the bankruptcy court, the current majority shareholder (Marcy Syms and entities with which she is affiliated) will sell all of her shares to Reorganized Syms on the plan’s effective date and relinquish control of the company.
On the effective date, Reorganized Syms’ initial new board of directors will be comprised of three directors appointed by the equity committee, one director appointed by the creditors’ committee, and one independent director mutually chosen by the equity committee and the creditors’ committee.
More information on the bankruptcy, as well as the Plan and Disclosure Statement, can be found at www.kccllc.net.
Previously on abfjournal.com: