Levitz unsecured creditors committee requests reconsideration of final DIP approval

By Caroline Salls

Pittsburgh, Nov. 21 - Levitz Home Furnishings, Inc.'s official committee of unsecured creditors requested the U.S. Bankruptcy Court for the Southern District of New York to reconsider its order approving debtor-in-possession financing for the company's Chapter 11 case, as it does not provide adequate protection to senior noteholders, according to a Monday filing.

The committee said that, despite the court's assertion that the noteholders were adequately protected by the expedited sale of indenture collateral, the final DIP order grants the senior noteholders replacement liens and super-priority administrative expense claims to the extent that the indenture collateral is diminished because of its use, sale or leasing.

Also, the committee said neither it nor the senior noteholders had an opportunity to review the final order before it was submitted to the court.

Levitz was granted final approval of the $80 million DIP facility on Nov. 10.

Levitz, a Woodbury, N.Y., furniture retailer, filed for bankruptcy on Oct. 11. Its Chapter 11 case number is 05-45189.

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