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Source : http://www.bloomberg.com/apps/news?p...d=acKHAq.VaaoA
Sept. 3 (Bloomberg) -- Samsonite Co. Stores LLC, the U.S. retail arm of luggage manufacturer Samsonite Corp., filed a Chapter 11 petition yesterday in Delaware accompanied by a reorganization plan designed to reinstate secured debt while paying unsecured creditors in full, though landlords’ claims would be cut back to the maximum allowed under bankruptcy law.
Samsonite is asking the bankruptcy court to hold a hearing on Oct. 4 to declare the disclosure statement was adequate and to approve the plan by signing a confirmation order.
The bankruptcy petition was filed to enable the retail subsidiary, which operates 173 stores in the U.S., to close 84 locations. Including affiliates not in bankruptcy, Mansfield, Massachusetts-based Samsonite has 500 stores throughout the world. The Chapter 11 filing was designed to help the company concentrate on its profitable U.S. outlet stores.
Samsonite said in a court filing that bankruptcy became necessary as a consequence of “exogenous macroeconomic factors.” The business was acquired in October 2007 in a $1.7 billion transaction by private-equity investor CVC Capital Partners Inc. By reinstating the $1.3 billion in secured debt and paying creditors in full, CVC would retain ownership under the reorganization plan.
Sept. 3 (Bloomberg) -- Samsonite Co. Stores LLC, the U.S. retail arm of luggage manufacturer Samsonite Corp., filed a Chapter 11 petition yesterday in Delaware accompanied by a reorganization plan designed to reinstate secured debt while paying unsecured creditors in full, though landlords’ claims would be cut back to the maximum allowed under bankruptcy law.
Samsonite is asking the bankruptcy court to hold a hearing on Oct. 4 to declare the disclosure statement was adequate and to approve the plan by signing a confirmation order.
The bankruptcy petition was filed to enable the retail subsidiary, which operates 173 stores in the U.S., to close 84 locations. Including affiliates not in bankruptcy, Mansfield, Massachusetts-based Samsonite has 500 stores throughout the world. The Chapter 11 filing was designed to help the company concentrate on its profitable U.S. outlet stores.
Samsonite said in a court filing that bankruptcy became necessary as a consequence of “exogenous macroeconomic factors.” The business was acquired in October 2007 in a $1.7 billion transaction by private-equity investor CVC Capital Partners Inc. By reinstating the $1.3 billion in secured debt and paying creditors in full, CVC would retain ownership under the reorganization plan.