Ritz Camera confirms liquidation plan

Ritz Camera Centers Inc. won approval of a liquidating Chapter 11 plan proposed by the company and the official creditor's committee. The bankruptcy judge signed a confirmation order yesterday, according to court files.

The disclosure statement told unsecured creditors they could expect a return of between 4 percent and 14 percent.

After filing under Chapter 11 in February 2009, Ritz generated $40 million by selling all 129 Boater's World Marine Centers. A group including the company's chief executive officer paid $16.25 million in cash and a $7.8 million note in July to buy at least 163 of the remaining 375 camera stores. Later, Ritz sold a $4 million account receivable for $1.5 million to an owner of the company that owed the debt.

The 800 locations at filing made Ritz the largest chain of camera stores in the U.S.

Debt of Beltsville, Maryland-based Ritz was originally listed as including $54.5 million on a secured revolving credit agreement with Wachovia Bank NA serving as agent. There was also $13.1 million owing on subordinated debentures. The petition said that assets and debt were both less than $500 million.

The case is In re RCC Liquidating Corp., 09-10617, U.S. Bankruptcy Court, District of Delaware (Wilmington).