Judge Signs Off On KB Toys' Ch. 11 Dismissals

Law360, New York (February 17, 2010, 2:16 PM EST) -- A bankruptcy judge has approved KB Toys Inc.’s bid to dismiss its Chapter 11 cases after it reached a settlement with claims holders, despite objections from its U.S. trustee that the move would circumvent U.S. bankruptcy law.

In a two-page order handed down Tuesday, Judge Kevin Carey of the U.S. Bankruptcy Court for the District of Delaware dismissed KB Toys’ Chapter 11 cases.

KB Toys moved for a dismissal of the cases after reaching a settlement with the official committee of unsecured creditors and other entities...
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