Vacuum Manufacturer Oreck Confirms Chapter 11 Plan of Liquidation in Tennessee

Oreck Corp., which made vacuum cleaners before that business was sold to Royal Appliance Manufacturing Co., won approval of a liquidating Chapter 11 plan with a bankruptcy judge in Nashville, Tenn., signing a confirmation order on Nov. 6 (In re Oreck Corp., Bankr. M.D. Tenn., 13-04006, plan confirmed 11/6/14).

The plan, proposed jointly by Oreck and the official unsecured creditors’ committee, was accepted by all classes entitled to vote, according to court papers.

Upon completion of the sale to Royal for $17.3 million in July 2013, Oreck fully repaid obligations to its pre- and post-bankruptcy secured lenders, ...