Bankrupt furniture store chain The Rowe Companies filed its reorganization plan that will allow its creditors to recover an amount “at least equal” to what would be available for their respective claims if the company were to liquidate, Bankruptcy Law360 reported yesterday. Rowe added that while its plan does not provide for the distribution to equity-holders of any property, it believes that holders of equity interests would not receive any distribution of property in a chapter 7 liquidation. Substantially all of Rowe’s assets have already been sold, according to the disclosure statement. Under the terms of the plan, Rowe wants to transfer 100 percent of its stock to another company, American Communications. In May, American agreed to pay $120,000 and fund an additional $60,000 of professional fees in connection with the plan.
Chapter 7 Bankruptcy