Linens Holding to receive $250,000 from Cephalon if settlement OK'd

By Lisa Kerner

Charlotte, N.C., Nov. 15 - Linens Holding Co. Chapter 7 trustee Charles M. Forman asked the court to approve a settlement with Cephalon Corp., according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is set for Dec. 27.

Under the proposed settlement, Cephalon will pay $250,000 to the trustee and reduce its $1.58 million unsecured claim and its $956,905 administrative claim to zero.

In exchange, Linens Holding will drop its adversary proceeding in which it sought payment of about $3.18 million from Cephalon for breach of contract.

In February, Linens Holdings cases were converted to Chapter 7.

Linens, a Clifton, N.J., home furnishings specialty retailer, filed for bankruptcy on May 2, 2008. Its Chapter 11 case number is 08-10832.

© 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.