Tower Records, liquidation agent agree to $3.08 million dispute settlement

By Caroline Salls

Pittsburgh, June 20 - Tower Records' liquidation agent agreed to pay $3.08 million under a settlement of liquidation agency agreement and final expense disputes, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The liquidation agent is a joint venture between Great American Group, LLC and Hudson Capital Group, LLC.

The agency agreement settlement payment will be $2 million, and the expense settlement payment will be $1.08 million.

According to the filling, the agency agreement settlement resolves a dispute between the agent and the company on the value of three categories of inventory.

In exchange for the settlement payments, the company has agreed to withdraw all claims against the liquidation agent.

A hearing is scheduled for July 11.

Tower is a subsidiary of Sacramento, Calif.-based MTS Inc. The company filed for bankruptcy on Aug. 20, 2006. Its Chapter 11 case number is 06-10886.

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