Circuit City Liquidation Plan Approved

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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.

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