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Tweeter Remnant Seeks Extension On Liquidation Plan

2/08/2008 10:12:00 AM Eastern

Washington — Tweeter Home Entertainment Group, which sold off its assets last summer to Schultze Asset Management, is requesting more time to develop a plan to divide the proceeds from the sale of the A/V specialty chain, now called Tweeter Newco.

According to published reports, the business entity has asked the U.S. Bankruptcy Court here for a four-month extension to review unresolved claims and assess its financial status. Tweeter also wants to extend its exclusivity period, which will allow it to retain control over the dispersal process by preventing other parties from filing their own liquidation plans.

The exclusivity period was set to expire this week but was extended to March 3, when the court will consider Tweeter’s requests.

The retailer filed for Chapter 11 bankruptcy protection last June amid a cash crunch stemming from faltering sales and steep lease-termination payments as it closed a third of its stores. Schultze, a Purchase, N.Y.-based investment group specializing in distressed businesses, acquired the 108-store chain in a bankruptcy auction in July for $38 million.

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