FTD’s Creditors Oppose Liquidation Plan Over Claims Payments

Creditors are objecting to flower retailer FTD Companies Inc.'s liquidation plan, concerned that funds reserved for them may be improperly used to pay other claims.

An Oct. 15 filing by an unsecured creditors committee said the plan could allow the bankrupt company, now known as GUE Liquidation Companies Inc., to pay administrative and priority claims partly from a fund reserved for the benefit of unsecured creditors.

Such payments would violate a settlement between unsecured creditors and senior lenders, the committee said in its filing at the U.S. Bankruptcy Court for the District of Delaware.

“The Plan, therefore, threatens to blow ...