Orchard's $8M Tax Debt Spurs IRS Objection To Ch. 11 Plan

Law360, New York (December 13, 2013, 6:37 PM EST) -- The Internal Revenue Service threw a wrench into the Chapter 11 reorganization plan of Orchard Supply Hardware Stores Corp. Friday, telling the Delaware Bankruptcy Court it objects to the plan because the company’s financial future does not guarantee payment of its $8 million tax debt.

The IRS said the court should halt Orchard Supply’s proposed reorganization plan because the company is months overdue on filing its latest tax return, leading to uncertainty surrounding future tax payments.

“IRS records indicate that [Orchard Supply] has not filed its...
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