Bakers Footwear trustee seeks return of cash, ruling on lender payment

By Caroline Salls

Pittsburgh, March 14 - Bakers Footwear Group, Inc.'s Chapter 7 trustee and Salus Capital Partners LLC asked the U.S. Bankruptcy Court for the Eastern District of Missouri to rule that the company's debtor-in-possession lender has been paid in full and requested approval to return $621,907 in cash collateral to the trustee, according to a Wednesday court filing.

The motion also asks the court to rule that the DIP lender has no more obligation to Bakers Footwear's trustee, estate and creditors and that the estate has no further obligation to the lender.

Bakers said the cash collateral to be returned includes $350,000 that would have been used to fund a carve out if the bankruptcy case had not been converted.

A hearing is scheduled for March 27.

Bakers, a St. Louis-based footwear retailer, filed for bankruptcy on Oct. 3. Its Chapter 7 case number is 12-49658.

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