Thus far in the Chapter 11 case, secured creditors have been paid in full, holders of priority claims and convenience class claims have received 100% of their allowed claims and unsecured creditors have been paid 50% of their allowed claims. "In total, over $41 million has been paid to creditors," Cohen says. "Additional dividends will be paid to unsecured creditors as claims are reconciled." It is expected that 75% or more of the unsecured claims will be paid.

Elaborating on the disposition of the case, Cohen says, "In a Chapter 11, everyone starts from a position of trying to get as much as they can for their group. What we try to do is show people that there are many ways to achieve that goal, without necessarily harming each other. We worked with the trade creditors, the landlords, the employees, the lenders, and their counsel and advisors not only to protect their interests, but also to demonstrate that compromises actually benefit everyone while allowing employees to keep their jobs and permitting the Filene's Basement name and its retail operations to continue. If anything, this case shows how the Chapter 11 process should work."

Cohen adds that in the end, this represents a "tremendously successful outcome because jobs were preserved, stores were kept open and creditors will recover most of their money. Despite the fact that people started with very different views about what to do with Filene's, we were able to forge compromises and build a consensus that ultimately resulted in maximum recoveries for all parties."