| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Rowe Cos. > News item |
Rowe debtor committee's professionals payment suspension order vacated
By Caroline Salls
Pittsburgh, Jan. 24 - The order approving the request by The Rowe Cos. debtor Rowe Furniture, Inc.'s official committee of unsecured creditors to temporarily suspend interim monthly payments to the company's professionals until after completion of an asset sale has been vacated, according to a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.
Under Wednesday's order, the company is authorized to make interim monthly payments for fees and expenses incurred by professionals retained by Rowe, the Rowe Furniture creditors committee and the official committee of unsecured creditors appointed in the Storehouse, Inc. Chapter 11 case.
If the company does not have sufficient funds to pay all fees and expenses of all estate professionals, it must pay the professionals a share of their approved fees and expenses.
In the motion to suspend the payments, the Rowe Furniture committee said Rowe's current financial condition and the proposed asset sale were clearly not expected by the company at the start of its bankruptcy cases.
The committee said it was concerned that the asset purchase price was insufficient to satisfy secured claims and all administrative claims, likely rendering the cases administratively insolvent.
Accordingly, the committee asked the court to temporarily suspend the payments until the sale process was completed and the company could determine whether there will be sufficient assets to satisfy GE's secured claim and all administrative expense claims.
Rowe, a McLean, Va.-based furniture company, filed for bankruptcy on Sept. 18. Its Chapter 11 case number is 06-11142.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.