Circuit City, Mitsubishi Settle Product Sale Spat For $5M

Law360, New York (May 4, 2010, 3:49 PM EDT) -- As it creeps toward securing confirmation of its Chapter 11 liquidation plan, Circuit City Stores Inc. has reached a nearly $5 million settlement with Mitsubishi Digital Electronics America Inc. to resolve a dispute over products Mitsubishi sold to the former big-box retailer.

The proposed settlement, filed Monday in the U.S. Bankruptcy Court for the Eastern District of Virginia, establishes a reserve in which the debtor will deposit $4.96 million to settle a claim filed under Bankruptcy Code § 503(b)(9), which grants administrative priority status to claimants...
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