Court Approves Liquidation Plan for ALCO Stores

The Bankruptcy Court for the Northern District of Texas entered an order confirming the Chapter 11 plan of liquidation of ALCO Stores. As counsel to the Official Committee of Unsecured Creditors, Cooley played a key role in maximizing the value of the liquidated assets, including inventory, owned real estate, real property leases and intellectual property, efforts which ultimately positioned the bankruptcy estate to confirm the plan. The plan provides for the creation of a liquidating trust that will be administered by a trustee and an advisory board consisting of the members of the creditors' committee. The liquidating trust will continue marshaling assets and investigating potential litigation claims to improve upon what is currently projected to be a multimillion-dollar cash distribution to general unsecured creditors. Cooley will continue to represent the liquidating trustee throughout the wind down.

Related Contacts
Jay Indyke Partner, New York
Seth Van Aalten Partner, New York