Party City Nets Court Approval of Bankruptcy Plan Disclosures

Party City Holdco Inc. got the green light to solicit its proposed wind-down plan to creditors after agreeing to amend its disclosures to address concerns from the Justice Department’s bankruptcy watchdog.

Judge Alfredo R. Perez conditionally approved disclosure documents for the party supplies retailer’s liquidation plan during a Friday hearing in the US Bankruptcy Court for the Southern District of Texas. However, the company will need to make some changes to the plan to ensure it provides due process for administrative claimants, the judge said.

The Chapter 11 liquidation process comes after Party City announced in December that it would ...