Businessweek reports thatPalm Harbor Homes Inc., which sold their assets to Fleetwood in April for $83.9 million, has scheduled a Nov. 17 confirmation hearing to approve a Chapter 11 plan. The bankruptcy court in Delaware approved this week the explanatory disclosure statement on Sept. 27. The disclosure statement predicts that holders of 3.25 percent convertible senior notes will recognize a recovery between 16.7 percent and 21 percent on their $54.8 million in claims. The plan states that general unsecured creditors with $36.4 million to $47.3 million in claims will receive an identical recovery. Palm Harbor filed under Chapter 11 in November, 2010. That petition said assets were $321 million with debt totaling $280 million. In addition to $34 million owing to Textron Financial Corp., there was $53.8 million owing at the time on the convertible senior notes due 2024. Palm Harbor Homes and Fleetwood Homes, a division of Cavco, are tracked in the MHProNews.com Daily Business News Market report. The case is re: Palm Harbor Homes Inc., 10-13850, U.S. Bankruptcy Court, District of Delaware.
(Graphic credit: Palm Harbor logo)