Embed from Getty Images. Like a zombie refusing to go down for the count, one of the largest and longest-running corporate bankruptcies in recent Richmond memory lurches on.
A full nine calendar years have passed since the company tumbled into bankruptcy protection with the hope of reorganizing and staying afloat. To date, the case has produced more than 14, docket entries as it has wound its way through Richmond
Circuit city liquidating trustee definition court.
In August Judge Kevin approved a motion to extend the term of the liquidating trust overseeing the bankruptcy estate through at least Nov. The case has trudged on longer than former Richmond-based peer LandAmerica, which went bankrupt a few weeks after Circuit City.
That case was closed out in lateseven years after its original filing. Richmond attorney Doug Foley of McGuireWoods was on the legal team with colleague Sarah Boehm that represented Circuit City during the early stages of the Chapter 11 case, when it still was aimed at reorganizing. Circuit City
Circuit city liquidating trustee definition was headquartered at the Deep Run 3 building in Henrico.
Most attorneys that spoke with BizSense said the payout for creditors thus far seems to warrant the expense. Creditors have received distributions from the trustee over the nine years of the case, which originally estimated a recovery range of 8 to 32 cents on the dollar. So the
Circuit city liquidating trustee definition it has taken to work through has worthwhile.
The first speed bump was due to the case being into liquidation after initially seeking reorganization. It took a couple years after the original filing before a liquidation plan was agreed upon by creditors and confirmed by the court. Then there was the process of hunting for assets to pay back to creditors, which in some instances led to other drawn-out legal battles.
Then there were preference litigations — small cases that seek to claw back money for companies that did business with Circuit City in days leading up to the bankruptcy filing.
About of those were filed, Cain said, resulting in various amounts coming back to the estate. Only two went to trial.
The longevity of Circuit city liquidating trustee definition Circuit City case has created a healthy market of investors are bullish on the efforts of the attorneys to recover money for creditors. Claims traders, a somewhat obscure group in the financial world, gamble on how much money will be found in a bankruptcy case by buying debt claims on spec.
So if the initial estimate in the Circuit City case was 16 cents on the dollar, claims traders would have bought claims from creditors at a discount from that, betting that the final outcome would be higher. That speculation has continued over the course of the case, he said, even as the payout percentage has risen. Perhaps the Circuit city liquidating trustee definition souls that may have noticed the Nov.
Cain said there are four full-time and three part-time workers on that staff. Update your browser to view this website correctly.
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