Musicland trade vendors object to examination request as 'wasteful and duplicative'

By Caroline Salls

Pittsburgh, March 9 - Musicland Holding Corp.'s informal committee of secured trade vendors objected to the official committee of unsecured creditors' request for an examination, calling the proposal "wasteful and duplicative," according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The trade vendors said the company has already been provided with the information requested, and can obtain it at much less cost from Musicland itself than from the 11 vendors in question.

On Wednesday, the court approved the unsecured creditors committee's request for an examination of current and former members of Musicland's senior management and boards of directors; officers and directors of Sun Music LLC; prior owner Best Buy Co., Inc. and lender Harris Bank NA.

The court did not authorize the examination of the trade lien creditors, pending further court order. The trade lien creditors were given until Friday to file their objection to the motion.

Musicland, a Minnetonka, Minn., specialty retailer of pre-recorded entertainment software products, filed for bankruptcy on Jan. 12. Its Chapter 11 case number is 06-10064.

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