Hancock Fabrics filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including May 12, 2017.
The motion explains, “As a result, during the first year of these large and complex chapter 11 cases, the Debtors have sold all or substantially all of their assets, closed all of their retail locations and the distribution center, reduced total headcount from more than 4000 employees to fewer than 15, terminated their pension plan, commenced four adversary proceedings to protect estate assets, filed thirteen extensive claims objections, and filed their chapter 11 plan of liquidation and related disclosure statement.”
In addition, “They are now in active discussions with the Creditors’ Committee regarding the Plan provisions. The Debtors and the Committee are working diligently on open issues regarding the terms of the Plan under which the Debtors will liquidate their estates, distribute the value obtained from these efforts to their various creditor constituencies and conclude these chapter 11 cases. The relief requested herein will permit the Debtors to prepare an amended Plan and Disclosure Statement and solicit support for what the Debtors anticipate to be a consensual chapter 11 liquidating plan in the near future.” The Court scheduled a March 15, 2017 hearing on the motion, with objections due by February 17, 2017.
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