NHB Assignments, LLC, a wholly owned subsidiary of NHB Advisors, Inc. has been appointed Plan Administrator to oversee the liquidation of Montgomery Ward, LLC et al. (“Wards”), the largest retail bankruptcy liquidation in U.S. history.

This liquidation is proceeding pursuant to the Third Amended Plan of Liquidation filed by the Official Committee of Unsecured Creditors of Montgomery Ward, LLC, et al., which was confirmed by the U.S. Bankruptcy Court for the District of Delaware by order entered on August 20th, 2002 (Case No. 00-4667 (RTL), the “Plan”). The Effective Date of the Plan is October 10th, 2002.

The Disclosure Statement relating to the Plan may be viewed in PDF format by clicking where indicated below. (You must have installed Adobe Acrobat version 4 or higher to view this document). Alternatively, a hard copy of the Disclosure Statement is available by contacting the Clerk of the U.S. Bankruptcy Court for the District of Delaware at the address listed below.

NHBAdvisors is responsible for winding down the remaining activities of Wards, managing the estate’s assets, and disbursing assets to creditors in accordance with the Plan. Thomas D. Hays, III CTP, Principal of NHB Advisors, Inc., and Sarah Pugh, Director at NHB Advisors, Inc., are responsible for managing this engagement. NHB Advisors, Inc. will post periodic news updates on this website as necessary.

Update on Timing of Montgomery Ward Final Distribution
Updated November 24, 2008

There were approximately 49,000 claims filed in the Montgomery Ward bankruptcy cases, with total claims filed against the Debtors in the amount of over $8 billion.  The Debtors and the Plan Administrator objected to over 12,000 claims, in the approximate amount of $3 billion.  To date, the Plan Administrator has made seven interim distributions to creditors, for a total return of 34.5% of allowed general unsecured claims.  Certain creditors with small claims against the Debtors may have received less than a 34.5% distribution thus far because the Bankruptcy Court has ordered the Plan Administrator to conserve funds and not mail distributions of less than $25.  If you are a member of this group, the amount due to you is not lost and will be included in the final disbursement once the total due to you exceeds $25.

The only unreconciled claims are those held by Dika-Ward, LLC, which is represented by Crane, Heyman, Simon, Welch & Clar.  Dika-Ward asserts claims against the Debtors in amounts exceeding $8.4 million.  The Plan Administrator objected to the Dika-Ward claims and asserts that Dika-Ward’s claims are without merit and should be expunged in total.

The Plan Administrator’s litigation with Dika-Ward has thus far spanned over two years.  During that time, the parties have engaged in two failed mediation sessions and have been before the Bankruptcy Court on countless occasions.  The allowance of the Dika-Ward claims is currently the subject of an appeal before the District Court.

The Plan Administrator does not expect the District Court to render its decision in the short term and the Court could take approximately one year to issue its decision.  Once the Court issues its decision, the losing party is entitled to appeal the decision to the Third Circuit Court of Appeals.  Should that occur, the Dika-Ward litigation will continue for a significant amount of time.  Unfortunately, until the Dika-Ward litigation is settled or otherwise resolved pursuant to a final order, the Plan Administrator cannot make a final distribution to creditors in this case.  In light of the uncertainty of the Dika-Ward litigation, it is impossible to predict when that distribution can be made.

You do not need to do anything to receive the final disbursement, once it can be made.  However, if you move, be sure to send your new address to Sarah Pugh by email or at the address listed below.

We will update this post after the District Court renders its decision.  In the interim, should you have any questions, please contact:

Questions or comments relating to Wards, and requests for a hard copy of the Disclosure Statement, should be addressed in writing to:

Sarah Pugh,
Director
NHB Advisors, Inc.
822 Montgomery Ave, Suite 204
Narberth, PA 19072
FAX 610-664-7298
Email: spugh@nhbteam.com

Alternatively, requests for hard copies of the Disclosure Statement and other documents in this case should refer to “Montgomery Ward, LLC, et al., Case No. 00-4667 (RTL)”, and should be addressed in writing to:

Clerk
U.S. Bankruptcy Court for the District of Delaware
Wilmington, DE 19899