Trustee Objects To KB Toys Ch. 11 Dismissal Bid

Law360, New York (November 25, 2009, 1:10 PM EST) -- An acting U.S. trustee has objected to KB Toys Inc.'s attempt to dismiss its Chapter 11 cases after distributing funds to claim holders and releasing parties from liability outside the purview of a court-approved reorganization plan.

Acting U.S. Trustee Richard Schepacarter lodged an objection Tuesday in the U.S. Bankruptcy Court for the District of Delaware, calling KB Toys' motion “merely a self-serving liquidating Chapter 11 plan designed to get a distribution to certain creditors, including professionals, resulting in the disposal of these cases without following the...
To view the full article, register now.