Musicland's Unsecured Creditors Sue Fox For $15M

Law360, New York (November 8, 2006, 12:00 AM EST) -- The committee of the unsecured creditors of bankrupt Musicland Holdings Corp. has filed suit against Twentieth Century Fox, claiming the entertainment company owes them over $15 million for various offenses in the wake of the former retailer’s Chapter 11 filing.

The suit, filed Friday, pits Musicland’s unsecured creditors against Twentieth Century Fox Home Entertainment, a major supplier of movies sold at Musicland’s retail outlets, which included Sam Goody and Suncoast.

Minneapolis, Minn.-based Musicland filed for Chapter 11 protection in January. Before that, Musicland’s companies regularly ordered...
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