Linens noteholder asks court to order company, auditors, equity sponsors to hand over information

By Caroline Salls

Pittsburgh, Sept. 10 - Linens Holding Co. noteholder Levine Leichtman Capital Partners Deep Value Fund LP asked the U.S. Bankruptcy Court for the District of Delaware to force the company, its auditors and equity sponsors to hand over documents related to the company's trade support and pre-bankruptcy audit, according to a Tuesday court filing.

According to the motion, Levine is a member of a noteholders' committee that has been part of Linens' plan of reorganization negotiations.

Levine said the continued trade support for the company's post-confirmation operations will be a key aspect of Linens' reorganization.

As a result, Levine said it needs the information in question to fully understand the company's trade support history.

In addition, Levine said it wants to know, in its capacity as a large noteholder, how the company received a clean audit opinion from Ernst & Young just several months before it filed for bankruptcy.

A hearing is scheduled for Sept. 23.

Linens 'n Things, a Clifton, N.J., home furnishings specialty retailer, filed for bankruptcy on May 2. Its Chapter 11 case number is 08-10832.

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