Ultimate Electronics parent's trustee needs GECC cash for liquidation

By Caroline Salls

Pittsburgh, June 14 - Ultimate Electronics parent Ultimate Acquisition Partners, LP's Chapter 7 trustee requested court approval to use the cash collateral of General Electric Capital Corp. to continue liquidation activities, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Trustee Alfred T. Giuliano said he must use cash collateral to fund his liquidation efforts because GECC has a security interest in all of the company's assets and inventory, leaving Ultimate Acquisition's estates with no free cash.

"Without the necessary funds, the trustee's administration and liquidation of the debtors' assets will halt and the value of those assets with decline significantly and prematurely," the motion said.

"A loss of funding will also result in irreparable harm to the debtors' estates and provide no return for the debtors' unsecured creditors."

As a result, GECC has agreed to the use of $98,000 of the cash collateral to fund the liquidation of specified assets.

Giuliano can also use of $45,000 to fund returned uncashed payroll checks from the two pay periods before the case was converted, subject to GECC's final review and consent.

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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