EDISON BROS.’ PLAN GETS OK FROM COURT
NEW YORK — Edison Bros. Inc.’s reorganization plan was approved Wednesday by Delaware Bankruptcy Court, setting the stage for its departure from Chapter 11 proceedings in late September.
The plan pays unsecured creditors 55 percent of their claims in cash and notes plus 100 percent of the stock in the reorganized company, as noted.
Edison, which operates several apparel and footwear specialty chains, said it expects to make the initial distribution to creditors within 60 days of its emergence from Chapter 11. It has been in bankruptcy proceedings since November 1995.
Edison expects its new stock to begin trading on a national exchange after the initial distribution is made. Existing shares will be wiped out, but holders will receive eight-year warrants to buy new stock at an exercise price of $16.40 a share.
Alan Miller will step down as Edison’s chairman, president and chief executive officer when a successor is found. A search has been under way since July.
Edison operates nearly 1,700 stores and has closed about 1,000 stores since filing for bankruptcy protection. Its chains include JW/Jeans West, Coda, Oaktree, J. Riggings, REPP Ltd., 5-7-9 Shops, Bakers/Leeds, Precis and Wild Pair.