Ultimate Electronics: Creditors committee could stall planned sale

By Lisa Kerner

Charlotte, N.C., Feb. 11 - The official committee of unsecured creditors of Ultimate Electronics parent Ultimate Acquisition Partners, LP asked the court to deny Ultimate Acquisition's sale request, according to a Feb. 11 filing with the U.S. Bankruptcy Court for the District of Delaware.

"While the committee does not object to the debtors' decision to shut their doors, the committee strongly opposes the debtors' defective sale process, because the debtors have failed to provide any evidence that they have fulfilled their fiduciary duty to maximize the value of their assets by engaging in a meaningful process to solicit competing liquidation bids," the filing said.

The committee believes that Ultimate Acquisition failed to market its assets prepetition or postpetition and also failed to solicit liquidation bids.

In the alternative, the committee asked the court to require that the debtors subject the consulting agreement to higher or otherwise better bids.

As previously reported, Ultimate Acquisition asked the court to approve its plan to retain Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources, LLC as liquidating consultants to close the debtors' retail stores.

Ultimate Electronics, a Thornton, Colo.-based consumer electronics retailer, filed for bankruptcy on Jan. 26. The Chapter 11 case number is 11-10245.

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