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COSTA MESA -- A federal bankruptcy judge has approved a reorganization plan for Maui & Sons, the surfwear company that filed for Chapter 11 protection from creditors more than two years ago, which will give creditors 67 cents on the dollar for their claims.
The company, probably best known by its trademark, a shark with sunglasses, filed bankruptcy in April 1988 listing liabilities of $7.1 million and assets of $2.5 million.
Maui & Sons must put up $1.4 million in cash by August 1 to pay its unsecured creditors and another $250,000 to pay in full the lawyers and accountants on the case, according to a reorganization plan approved in bankruptcy court.
The money for the unsecured creditors is coming from Richard Harrington, who bought...