Modell’s Bankruptcy Liquidation Plan Approved For Creditor Vote

Modell’s Sporting Goods Inc. won approval to circulate its bankruptcy liquidation plan for creditors’ vote following a few final revisions.

The athletic gear retailer can pencil in a hearing date next month to confirm its wind-down Chapter 11 proposal, Judge Vincent F. Papalia of the U.S. Bankruptcy Court for the District of New Jersey ruled during a telephonic hearing Thursday.

The company projects the plan will pay general unsecured creditors less than $1 million on an estimated $100 million in claims. A liquidation trust would be established to wind down the estate and potentially recoup additional funds by pursuing retained ...