True Religion’s Disclosures Approval Allows Bankruptcy Plan Vote

True Religion Apparel Inc. can send its Chapter 11 reorganization plan for a vote after getting bankruptcy court approval of its disclosure statement.

The plan, which would allow the reorganized company to emerge from bankruptcy with less debt, would set aside up to $50 million for unsecured creditors, giving them 0.3 to 1.3% of what they are owed. Equity owners would get nothing.

Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware, who approved the company’s disclosures Monday, ordered plan objections to be filed by Aug. 31. A plan confirmation hearing is set for ...