Circuit City equity trading procedures approved

By Caroline Salls

Pittsburgh, Nov. 19 - Circuit City Stores, Inc. has obtained court approval to establish notification and hearing procedures for trading its equity securities and to establish notice and sell-down procedures for trading in claims against the company, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The procedures require a substantial shareholder, defined as a holder of 7.85 million shares of Circuit City's common stock, to notify the company of its substantial equityholder status within 10 days of becoming a substantial equityholder.

In addition, substantial equityholders are required to give 30-days' notice when they plan to transfer the company's securities.

The company will then have 30 days to object to the proposed transfer.

Circuit City, a Richmond, Va., electronics retailer, filed for bankruptcy on Nov. 10 in the U.S. Bankruptcy Court for the Eastern District of Virginia. Its Chapter 11 case number is 08-35653.

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