Goody's Family Clothing files plan of reorganization

26 Jul '08

2 min read

Goody's Family Clothing Inc, a retailer of moderately priced family apparel operating in small to midsize markets primarily throughout the Southeast, announced that on July 24, 2008, it and its subsidiaries (collectively, the "Debtors") filed a Disclosure Statement (the "Disclosure Statement") with respect to the Joint Plan of Reorganization Proposed by Goody's Family Clothing Inc. (Goody's) and Subsidiary Debtors, Debtors in Possession, and the Official Committee of Unsecured Creditors (the "Plan"), with the United States Bankruptcy Court for the District of Delaware (the "Court").

If confirmed, the Plan will implement a compromise and settlement among the Debtors, their pre-petition senior lender, their pre-petition junior lenders including PGDYS Lending LLC and GMM Capital LLC, and the Official Committee of Unsecured Creditors (the "Committee").

The Debtors will be reorganized pursuant to the Plan, if confirmed, and will continue in operation, achieving the objectives of Chapter 11 for the benefit of their creditors, customers, suppliers, employees and communities. The Committee is a proponent of the Plan.

Commenting on the announcement, Paul White, Goody's Chief Executive Officer, said, "We appreciate the support of our vendor community, customers and employees during this Chapter 11 process.

We are encouraged by the Committee's support of the Plan and we look forward to the Court's consideration of the Disclosure Statement, scheduled for August 25, 2008."

Mr. White added, "If the Disclosure Statement is approved by the Court, Goody's intends to solicit votes from its creditors concerning the Plan and, subject to the voting results, to thereafter proceed to seek Court confirmation of the Plan."

Goody's Family Clothing Inc

More Goody's Family Clothing Inc News... More Apparel/Garments News - United States Of America...