Schlotsky’s Bankruptcy Remains Chapter 11

Law360, New York (March 14, 2006, 12:00 AM EST) -- The two motions to convert the Schlotsky’s Deli bankruptcy petition to a Chapter 7 case have been rendered moot after a judge approved a liquidation plan under the company's Chapter 11 filing.

A Texas bankruptcy judge gave the green light to a liquidation plan that would defer payments to professionals while the company divests itself of its assets. Unlike a Chapter 7 liquidation, in which control of the company would be handed over to a trustee, Schlotsky’s will retain control during the dismantling.

The deli is...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.