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Circuit City Liquidation Plan Approved

Richmond, Va. – A
federal bankruptcy court has approved a final liquidation plan that will pay
Circuit City’s unsecured creditors at least 10 percent on their claims.

According to reports
by the Richmond Times-Dispatch and Bloomberg News, a court-appointed trustee
will disperse about $450 million in payments on about $1.8 billion in claims
once the plan goes into effect later this month.

Most of the secured
creditors have already been paid.

Circuit City filed for
bankruptcy in November 2008 and shut its last stores in March 2009, taking about
34,000 jobs with it.

The liquidation plan
had been sidelined for nine months by procedural issues and squabbles between
the company and a creditors committee over payment details.