Tower Records creditor Bear Stearns asks court to honor vote against plan of liquidation

By Jennifer Lanning Drey

Portland, Ore., July 27 - Tower Records creditor Bear Stearns asked the court to classify its vote to reject the company's plan of liquidation as valid, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Bear Stearns is the record holder of claims totaling $3.65 million, according to the motion.

Balloting agent Omni Management Group did not include Bear Stearns' master ballot in a July 25 vote tabulation and said it was invalid because it was received past the deadline, according to the motion.

Bear Stearns claims its master ballot was sent via e-mail before the deadline, but due to an imaging error, the signature page was 18 minutes late. Bear Stearns said it also sent a copy of the ballot to Omni, which was received one day after the deadline.

Bear Stearns told the court the tardiness should be classified as "excusable neglect" and the vote allowed to be counted.

A hearing has been scheduled for July 31.

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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