ALBUQUERQUE, N.M. — Almost two years after Flying Star filed for bankruptcy protection, its owners have earned creditor approval to move the company forward.
Jean and Mark Bernstein still need a U.S. Bankruptcy Court judge’s order to execute their reorganization plan, but it received a critical endorsement from creditors in a recent vote. Every class of creditors in the Chapter 11 case either actively voted to approve the plan or was deemed to have accepted by not casting ballots, according to a tally report the Bernsteins filed in court this week.
Jean Bernstein and Paul Fish, the attorney representing Flying Star’s unsecured creditors committee, said they expect the plan to get judicial confirmation during a scheduled hearing on Tuesday.
Confirmation will allow the Bernsteins to initiate their plan to keep control of the company by buying all Flying Star equity at auction for at least $2.8 million. The sum will allow them to pay some of Flying Star’s claims — like the legal costs of the bankruptcy process — in full immediately. They will pay off other creditors, like their lenders, in full in monthly installments.