Jeweler Shane's Bankruptcy Reorganization Plan to Go to Creditors for Vote
Shane Co., the owner of a retail jewelry chain, won court approval to send its bankruptcy reorganization plan to creditors for a vote.
U.S. Bankruptcy Judge Howard Tallman, after a two-day hearing in Denver, yesterday approved Shane’s disclosure statement, which explains the plan, moving the company a step closer toward exiting Chapter 11. A hearing on confirmation of the plan is scheduled for Nov. 10.
Shane, based in Centennial, Colorado, filed for creditor protection in January 2009, saying the recession “had a substantial, negative impact on its revenue.” The company also defaulted on the terms of loan agreements.
Under the plan, filed in August and amended yesterday, Shane will pay creditors holding secured claims in full. Holders of general unsecured claims will be paid “over time, from available revenues of the company,” Shane said.
Revenue for the year ended in January 2009 fell 23 percent to $212 million from $276 million the year before, the company said.
The case is In re Shane Co., 09-10367, U.S. Bankruptcy Court, District of Colorado (Denver).
To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net.
To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net
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