Rowe seeks court OK of settlement providing $6.63 million payment from former officers, directors

By Jennifer Lanning Drey

Portland, Ore., Nov. 3 - The Rowe Cos.' Chapter 7 trustee requested court approval of a settlement resolving claims against former company directors and officers, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

Under the agreement, the directors and officers will pay Rowe $6.63 million within five days of court approval of the settlement.

Rowe will in turn release its claims against 11 directors and officers.

The company previously demanded that the directors and officers pay the estate damages for violations of corporate governance principals.

The demand alleged the directors' conduct and inaction in failing to timely sell, recapitalize, rehabilitate or restructure financial affairs caused harm to creditors.

Rowe, a McLean, Va.-based furniture company, filed for bankruptcy on Sept. 18, 2006 in the U.S. Bankruptcy Court for the Eastern District of Virginia. 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.