Final hearing on Linwood bankruptcy case set for Aug. 21
Furniture Today Staff -- Furniture Today, August 1, 2013
WINSTON-SALEM, N.C. — Linwood Furniture is about to enter the last phase of its nearly 18th month bankruptcy.
On Aug. 21, legal counsel will present a final report detailing expenses to be paid to secured creditors. The are no funds available to pay claims from unsecured creditors, the report indicates.
The case was filed as a Chapter 11 reorganization in March 2012, but converted to a Chapter 7 liquidation last summer when the six-year-old case goods producer continued to suffer financial losses and was unable to restructure the business.
The report, filed by trustee C. Edwin Allman III, notes that approximately $105,256.73 in administrative expenses will be paid to secured creditors. These include trustee fees and expenses along with other legal and administrative expenses.
There are slightly more than $3 million in unsecured claims that will not be paid, according to Allman. The largest of these is $842,346 owed to Kepley-Frank Hardwood. Another $570,213 is owed to Euler Hermes North America, $347,877 is owed to Chesterfield Wood Products and $208,140 is owed to Bradley Personnel, according to the report.
Other creditors with large unsecured claims include Multi-Wall Packaging Corp., Akzo Nobel Coatings, Woodcraft Inc., and Market Square. .
The hearing is set for 2 p.m. Aug. 21 in Courtroom 1 at 226 South Liberty St., Winston-Salem.
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