Court Approves Musicland Disclosure Plan

Law360, New York (October 17, 2006, 12:00 AM EDT) -- A bankruptcy court judge has approved bankrupt music retailer Musicland’s disclosure statement, making creditor approval the only obstacle to the company’s liquidation.

U.S. Bankruptcy Court Judge Stuart Bernstein approved the statement, which outlines the company’s plan to sell off its assets. Musicland hopes to complete the liquidation by the end of December.

The disclosure statement details the impending sale of the remaining Musicland assets to Trans World Entertainment Corp. in a deal that will garner $122.3 million for the bankrupt company.

The money will be used...
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