U.S. Bankruptcy Judge Christopher S. Sontchi in the District of Delaware has confirmed the plan of liquidation in the Chapter 11 bankruptcy case of discount general merchandise retailer Fred’s, Inc. Lowenstein Sandler serves as counsel to the Official Committee of Unsecured Creditors in the matter.
The original plan was rejected at the recommendation of the Committee due to terms considered unfavorable to the creditors. The Lowenstein team engaged in several months of extensive negotiations with the debtors over issues including third party and debtor releases, finally reaching an amended plan which provides approximately 5 percent recovery to the unsecured creditors on their nearly $100 million in claims and the potential pursuit of additional claims post-confirmation.
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