Levitz gains court approval to dismiss Chapter 11 cases of six dissolved debtors

By Jennifer Lanning Drey

Portland, Ore., Dec. 21 - Levitz Home Furnishings, Inc., along with Levitz Furniture Corp. and Seaman Furniture Co. Inc., obtained court approval to dismiss the Chapter 11 cases for six of their non-operating subsidiaries, according to attorneys familiar with the case.

The six dissolved debtors are Levitz Furniture Co. of Delaware, Inc., John M. Smyth Co., Levitz Shopping Service, Inc., Seaman Furniture Co. of Union Square, Inc., Paralax Development Industries, Inc., and RHM, Inc.

The dissolved debtors have no assets or business operations and, thus, lack the ability to pay post-bankruptcy claims or to confirm a plan of reorganization, according to the companies' motion requesting the relief.

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

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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