Levitz Home Furnishings' unsecured creditors committee withdraws request to reconsider DIP order

By Caroline Salls

Pittsburgh, Nov. 29 - Levitz Home Furnishings, Inc.'s official committee of unsecured creditors withdrew its request to reconsider the U.S. Bankruptcy Court for the Southern District of New York's order approving debtor-in-possession financing for the company's Chapter 11 case, according to a Monday filing.

According to the original motion, 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 Oct. 11. Its Chapter 11 case number is 05-45189.

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