Linens Holding trustee: case ‘not ready to be closed at this time’

By Caroline Salls

Pittsburgh, Aug. 20 – Linens Holding Co. Chapter 7 trustee Charles M. Forman said in a status report filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware that the company’s bankruptcy case “is not ready to be closed at this time.”

Last month, the court ordered Forman to file a status report on the company’s case. Judge Christopher S. Sontchi said in the order that the case docket reflected “an extended period of inactivity of 180 days or longer.”

The trustee said in Tuesday’s report that he is still in the process of reviewing administrative expense claims and expects objections to those claims to be filed in the fourth quarter.

Forman also said several assets have not yet been fully liquidated, and he is still receiving restitution payments. The trustee said he expects funds from these assets may be available for distribution in 12 to 18 months.

As a result, Forman said he does not expect to be in a position to close the case for 18 to 24 months.

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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