Hancock Disclosure Statement, Backstop Deal OK'd

Law360, New York (June 19, 2008, 12:00 AM EDT) -- A bankruptcy court has approved Hancock Fabric Inc.'s disclosure statement for its recently filed Chapter 11 reorganization plan and its backstop agreement related to the debtor's planned public offering.

Judge Brendan L. Shannon, of the U.S. Bankruptcy Court for the District of Delaware, ruled on Tuesday that approving the disclosure statement “is in the best interests of the debtors' estates, creditors and other stakeholders and meets the applicable standards set forth in the Bankruptcy Code.”

Shannon also authorized a backstop agreement between Hancock and Sopris Capital...
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