Tweeter Gets Chapter 11 Extension
Washington D.C. Tweeter Home Entertainment Group Inc. won four more months to control its bankruptcy case as it sorts out the claims against the company.
Judge Peter J. Walsh of the U.S. Bankruptcy Court in Wilmington, Del., said Monday that the former electronics retailer may have through June 5 to file its Chapter 11 plan of liquidation without the threat of competing plans. This right would have otherwise expired Feb. 6.
Tweeter requested the extension last month in order to finish analyzing the claims against it and to reconcile its assets and liabilities after a sale of substantially all its assets closed last summer. The company argued that its creditors would only benefit from the delay.
The company said it wasn't trying to pressure its creditors to support its bankruptcy-exit plan but wanted to ensure the creditors' input as it drafted its plan.
Tweeter will now have through Aug. 4 to solicit creditors' support for the plan. The previous deadline was April 7.