USA Discounters secures third extension of plan exclusivity periods

By Caroline Salls

Pittsburgh, July 7 – USA Discounters, Ltd. obtained a third extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed July 7 with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company’s exclusive filing period was extended through Sept. 20 from June 20 and the solicitation period through Nov. 18 from Aug. 18.

USA Discounters said settlement negotiations regarding disputes and potential litigation between its official committee of unsecured creditors and secured lenders restarted, and the parties recently exchanged further draft term sheets.

In addition, the company said an agreement in principle has been reached in connection with a multi-state attorney general investigation. USA Discounters said it hopes to have the agreement finalized by mid-July.

“The debtors remain optimistic that a global resolution will be reached, which should facilitate the filing and prosecution of a consensual Chapter 11 plan soon after the multi-state settlement is considered by the court,” the motion said.

USA Discounters, a Norfolk, Va.-based retailer, filed for bankruptcy on Aug. 25, 2015. Its Chapter 11 case number is 15-11755.

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