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Circuit City Liquidation Still Drags On

Richmond, Va. – More than a year
after Circuit City shut its last stores, the company’s final liquidation is
still on hold.

In the latest wrinkle, a federal
judge here has appointed a mediator to help devise a plan for disbursing the chain’s
assets after the company and its creditors were unable to reach an accord.

According to the Richmond
Times-Dispatch, a liquidation plan was filed when Circuit City entered
bankruptcy protection in November 2008, but was never approved due to hearing delays
over tax matters and other issues.

Frustrated by the delays, the
creditors committee filed its own liquidation plan earlier this month,
prompting Circuit City to request third-party mediation.

Both sides then agreed to resume
negotiations to avoid court-ordered mediation, but failed to resolve their
differences over the plan’s bylaws and the composition of a committee that will
disburse the remaining funds.

All parties are due back in court on
July 22 to report their progress. But while the haggling continues, the
professional fees continue to mount, with payments topping $47 million through
April, the newspaper reported.