Forever 21’s remaining creditors would recover less than 1% of claims totaling more than $900 million under the latest Chapter 11 plan from the bankrupt retailer.
The amended plan, filed June 11, incorporates a court-approved settlement that would pay primarily post-bankruptcy vendors and suppliers about 11% of their claims. The remaining portion of their claims—amounting to about $400 million—would be treated as unsecured claims with a recovery of less than 1%.
Other unsecured creditors, which hold claims of about $500 million, also would recover less than 1%, according to the company’s disclosure statement.
The proposed plan follows ...
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