Levitz unsecured creditors push Chapter 7 liquidation
FURNITURE Today reportd that unsecured creditors want Levitz to file for Chapter 7 bankruptcy.
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In a document filed this week, the committee said the fast-track bidding procedure Levitz proposed under its Chapter 11 filing earlier this month would benefit only the retailer’s pre-petition lenders — General Electric Capital Corp., owed $42 million, and possibly YA Global Investments, or Yorkville, owed $22 million.The unsecured creditors are afraid most everything would go to GECC and YA Global leaving nothing to the unsecured creditors.A Chapter 7 liquidation, the committee said, would keep certain assets clear for distribution to other creditors.
A hearing on the bidding procedures is scheduled for today.
Related Posts (on one page):
- Sofa Express Files Chapter 11
- Sofa Express and More Is Missing
- Levitz Update
- Levitz unsecured creditors push Chapter 7 liquidation
Posted by movermike on
Wednesday November 21, 2007 at 8:19am
