Creditors Object To Terms Of Musicland Asset Sale

Law360, New York (February 27, 2006, 12:00 AM EST) -- The committee of unsecured creditors for bankrupt Musicland Holding Corp. is accusing the company of trying to stifle competition from other buyers through the terms of its $104 million asset sale to rival Trans World Entertainment Corp.

The creditors specifically objected to a so-called breakup fee valued at $3.1 million, which would be paid to Trans World if it fails to emerge as the final bidder for the entertainment retailer's assets after a March 21 auction.

The documents were filed at the U.S. Bankruptcy Court for...
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