Fullbeauty Brands Inc., the women’s plus-size retailer, is on path to set a record for fastest U.S. bankruptcy after taking less than 24 hours to win court approval for its plan to restructure the company, Bloomberg News reported. The company had support from all its stakeholders when it filed for chapter 11 status on Sunday in the U.S. Bankruptcy Court in White Plains, New York. Fullbeauty, which had more than $1 billion of borrowings, is cutting around $900 million of debt through the bankruptcy process, allowing it to cut the cash it has to funnel toward interest payments while it turns itself around. Bankruptcy Judge Robert Drain said that there were good reasons to approve the company’s plan promptly, including that every creditor had voted for the plan, and that the company has foreign suppliers that may not be comfortable selling to a company in bankruptcy. He gave verbal approval for the plan and said he would sign an order officially confirming it today. The previous record for the fastest chapter 11 process is held by Blue Bird Body Co., which exited bankruptcy in 2006 in less than two days.
