RICHMOND, VA. — More than a year after Circuit City closed, its liquidation is still on hold. In the latest wrinkle, a federal judge here has appointed a mediator to 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 2008, but was never approved due to hearing delays. Last month the company and a creditors committee failed to agree on the plan’s bylaws and the makeup of a group that will disburse remaining funds, prompting the judge to order mediation.
All parties are due back in court on July 22 to report their progress. Meanwhile, the professional fees continue to mount, with payments topping $47 million through April, the newspaper reported.