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Article Date: September 2020
Word Count: 343

Modell’s Liquidation Stings Vendors Yet Again

Unsecured creditors, whose claims total about $100 million and include both vendors and landlords, will recover less than 1% of what is owed to them, according to the disclosure statement filed with the liquidation plan. Secured creditors with a revolver loan of $29 million, a term loan of $9.2 million plus LCs totaling $4.6 million will be paid in full. Administrative claims to be paid in full total $4.8 million and include amounts negotiated with landlords for rent covering the post petition delays in liquidating the inventory that were caused by the pandemic. The $6.8 million pre-petition loan from CEO ... Log in to view full article.


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