Steve & Barry's: Conversion of Chapter 11 cases eyed due to insolvency

By Lisa Kerner

Charlotte, N.C., Nov. 2 - The U.S. trustee for region 2, Tracy Hope Davis, asked the court to convert BH S&B Holdings, LLC, also known as Steve &Barry's, Chapter 11 cases to Chapter 7 cases, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of New York.

In support of the motion to convert the cases, Davis said the debtors have liquidated substantially all of their assets and have not filed a plan or disclosure statement.

The debtors have "a razor thin level of administrative solvency" based on the company's latest operating report, the filing said.

However, Davis said the operating report is deficient because it does not list the debtors' administrative and priority claims.

"When these claims are considered, the debtors appear to be administratively insolvent and unable to confirm a plan," according to the filing.

BH S&B, also known as Steve & Barry's, is a Port Washington, N.Y.-based national apparel and accessories retailer that filed for bankruptcy on Nov. 19, 2008 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-14604.

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