Ultimate Electronics Seeks Conversion To Ch. 7

Law360, New York (April 27, 2011, 7:12 PM EDT) -- With their secured lender threatening to cut off access to cash, the parent companies of defunct Ultimate Electronics moved Tuesday to convert their Chapter 11 bankruptcy case in Delaware to Chapter 7 proceedings.

After its Jan. 26 bankruptcy filing, Ultimate Electronics’ management held out hope of reorganizing the company and continuing operations on a scaled-down basis. But after failing to attract debtor-in-possession financing and receiving minimal use of cash collateral from secured lender General Electric Capital Corp. in the first two weeks of the bankruptcy, the...
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