Bar Louie Restaurant Chain Bankruptcy Liquidation Plan Approved

Restaurant chain Bar Louie won bankruptcy court approval of its Chapter 11 plan to liquidate, after closing or selling all locations.

The plan, approved Wednesday by Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware, creates a trust that will likely pay unsecured creditors between 2% and 5% of about $38 million of claims.

A plan administrator will sell Bar Louie’s liquor licenses and other remaining assets to pay claims, according to court-approved plan disclosures. What’s left over will go to the unsecured creditors trust, which will also hold the right to bring ...