Forever 21 To Liquidate After Ch. 11 Plan Falls Through
By Vince Sullivan (July 22, 2021, 6:48 PM EDT) -- The bankruptcy case of fast-fashion retailer Forever 21 will convert to a Chapter 7 liquidation after a Delaware bankruptcy judge said Thursday its proposed Chapter 11 plan did not garner sufficient support from affected administrative creditors.
During a virtual hearing, debtor attorney Joshua A. Sussberg of Kirkland & Ellis LLP said the plan, which would have provided an 11% recovery to administrative creditors, had received affirmative support from more than 91% of affected creditors, but that about 8.5% had not responded to solicitation communications.
Sussberg said the supporting creditors represented about $118 million of the $130 million in estimated outstanding administrative...
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