Musicland's preference settlement approved for $51,500

By Rebecca Melvin

New York, Jan. 3 -Musicland Holding Corp.'s settlement agreement with four preference defendants was approved Thursday at the U.S. Bankruptcy Court for the Southern District of New York, according to an attorney.

The company and the official creditors committee sought the return of payments from creditors received 90 days prior to Musicland's bankruptcy filing.

Musicland's settlement, under which the company will receive $51,500 from four defendants, was approved, the New York-based attorney said.

Under the agreement, Musicland will receive: $26,000 from AT&T, Inc.; $14,000 from Certegy Check Services, Inc.; $6,500 from Sony Electronics; and $5,000 from the Lacek Group.

No further hearings were scheduled.

Musicland, a specialty retailer of pre-recorded entertainment software products based in Minnetonka, Minn., filed for bankruptcy on Jan. 12, 2006. Its Chapter 11 case number is 06-10064.

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