Levitz asks court to dismiss Chapter 11 cases of two dissolved debtors

By Caroline Salls

Pittsburgh, Nov. 27 - Levitz Home Furnishings, Inc. asked the U.S. Bankruptcy Court for the Southern District of New York to dismiss the Chapter 11 cases for dissolved debtors Levitz Furniture Corp. and Seaman Furniture Co., Inc., according to a Monday court filing.

According to the motion, the estates of the dissolved debtors are administratively insolvent because they do not have sufficient funds to pay their super-priority debtor-in-possession facility claims in full.

Levitz said the dissolved debtors have no assets or business operations and, thus, lack the ability to pay these post-bankruptcy claims or to confirm a plan of reorganization.

The dissolved debtors' estates already have been merged and/or dissolved under state law, and Levitz said dismissal of their Chapter 11 cases will eliminate the accrual of any further quarterly U.S. Trustee fees.

A hearing is scheduled for Dec. 21.

Levitz, a Woodbury, N.Y., furniture retailer, filed for bankruptcy on Oct. 11, 2005. Its Chapter 11 case number is 05-45189.

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