M. Fabrikant Creditors Could Get Back As Little As 7.5%

M. Fabrikant & Sons Inc.'s unsecured creditors may see anywhere between 7.5 percent to a full payment of what they are owed, according to a revised Chapter 11 plan filed Thursday with the U.S. Bankruptcy Court in Manhattan.

The New York diamond and jewelry firm owes unsecured creditors between $36 million to $110 million, according to the filling, quoted by The Associated Press. The same goes for unsecured creditors of Fabrikant-Leer International, who are owed between $13 million and $60 million.

The U.S. Bankruptcy Court is scheduled to hold a hearing today (Tuesday) to consider approving M. Fabrikant & Sons' disclosure statement

The new filing follows objections raised by a government monitor overseeing the bankruptcy and the executor of a former board co-chairman's estate that claimed the original disclosure statement didn't state how much unsecured creditors will recover.

Fabrikant filed for Chapter 11 protection last November, listing $363 million in debts and $225.9 in assets.