Eddie Bauer Holdings (fka EBHIQ)

[eom7]

On March 18, 2010, the Bankruptcy Court entered an order (the “Confirmation Order”) confirming the First Amended Joint Plan of Liquidation of EBHI Holdings, Inc., et. al. under Chapter 11 of the Bankruptcy Code, dated January 26, 2010 (including all exhibits thereto, and as modified by the Confirmation Order, the “Plan”). The Debtors also filed with the Bankruptcy Court a Disclosure Statement in support of the Plan (the “Disclosure Statement”). The descriptions of the Confirmation Order and the Plan contained herein do not purport to be complete and are qualified in their entirety by reference to the Confirmation Order. A copy of the Confirmation Order, which includes a copy of the Plan, as confirmed, is attached hereto as Exhibit 99.1 and is incorporated herein by reference. Copies of the Confirmation Order, the Plan, the Disclosure Statement, and other pleadings and documents filed with the Bankruptcy Court by the Debtors and other parties are also publicly available on the website of the claims agent, Kurtzman Carson Consultants, LLC, at http://www.kccllc.net/eddiebauer.
The Plan contemplates a full liquidation of the Debtors’ assets. Under the Plan, the proceeds of the liquidation, subject to certain exceptions, will be distributed to the holders of Allowed Other Priority Claims (as defined in the Plan) and Allowed General Secured Claims (as defined in the Plan). The holders of the Term Lender Secured Claim (as defined in the Plan) will receive periodic distributions from the Liquidating Trust (as defined in the Plan) pursuant to the terms of the Committee Settlement Stipulation (as defined in the Plan). The holders of Allowed General Unsecured Claims will receive pro rata shares of the remaining Available Cash (as defined in the Plan), if any. The Plan also governs the payment of Allowed Administrative Expense Claims, Allowed Professional Claims and Allowed Priority Tax Claims (each as defined in the Plan). The holders of Noteholder Securities Claims, Intercompany Claims, Interests (including all holders of equity interests in the Debtors) and Interests Securities Claims (each as defined in the Plan) will not receive any property under the Plan.