Gottschalks Presses GE Capital For Withheld Funds

Law360, New York (April 15, 2010, 4:19 PM EDT) -- Liquidating department store chain Gottschalks Inc. has condemned former debtor-in-possession lender General Electric Capital Corp. for refusing to return nearly $1 million, even though the debtor has repaid the funds and provided requisite releases for the lender.

On Wednesday, Gottschalks urged Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to force GE Capital to relinquish about $936,000 it has allegedly retained as an expanded indemnity kitty for continuing legal fees or other potential obligations in connection with the $125 million...
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