Value City's disclosure statement approved despite trustee's objection

By Lisa Kerner

Charlotte, N.C., March 18 - Value City Holdings, Inc.'s disclosure statement was approved, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

A plan confirmation hearing is scheduled for May 13.

As previously reported, Value City Holdings' U.S. Trustee Diana G. Adams objected to the company's disclosure statement for its joint plan of liquidation on the grounds that it contains insufficient information about the funding of the $300,000 distribution to unsecured creditors.

Adams said it appears that Value City must recover $2.5 million from avoidance actions to fund distributions to unsecured creditors and to fully fund priority claims.

Value City, a Columbus, Ohio, off-price retailer, filed for bankruptcy on Oct. 26, 2008. Its Chapter 11 case number is 08-14197.

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