Linens Chapter 7 trustee gets court OK of Calphalon settlement

By Caroline Salls

Pittsburgh, Dec. 23 - Linens Holding Co. Chapter 7 trustee Charles M. Forman received court approval of a settlement with Calphalon Corp., according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the proposed settlement, Calphalon will pay $250,000 to the trustee and reduce its $1.58 million unsecured claim and its $956,905 administrative claim to zero.

In exchange, Linens Holding will drop its adversary proceeding in which it sought payment of about $3.18 million from Calphalon for breach of contract.

Linens, a Clifton, N.J., home furnishings specialty retailer, filed for bankruptcy on May 2, 2008. Its Chapter 7 case number is 08-10832.

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