Worst DIY Installs Ever Part 7
10 Must-Have Products for Your Next Install
6 Amazing High-End Home Theaters
8 Awesome Turntables for Spinning Vinyl
Print
Email
Comments (0)
Share
Circuit City Receives Approval from Bankruptcy Court
Big-box retailer approved to make wage and salary payments, continue employee benefits and more.
The Federal Bankruptcy Court in Richmond, Va. has approved Circuit City's first day of motions after the big-box retailer voluntarily filed for Chapter 11 bankruptcy.
Circuit City, which is in the process of closing 155 stores, received approval for a $1.1 billion debtor-in-possession (DIP) revolving credit facility to supplement its working capital and provide additional liquidity while the company reorganizes.
The second-largest big-box retailer in the United States also received authority to:
"These approvals will help position us for a more successful holiday selling season and allow us to operate our business and serve our valued guests without interruption as we work to emerge from Chapter 11 as quickly as possible."
The New York Stock Exchange (NYSE) has also suspended the company's common stock. Circuit City says not being listed on the NYSE is not a default under the company's DIP revolving credit facility.
It's common stock is currently trading over the counter and is being quoted on the Pink Sheets service under the symbol CCTYQ. Circuit City says it will "take appropriate steps to maintain an active trading market for its common stock but can provide no assurance that there will be an active trading market."
Circuit City was not in compliance with NYSE price criteria for common stock because the average closing price of the company's common stock was less than $1 per share over a consecutive 30-day trading period.
Circuit City, which is in the process of closing 155 stores, received approval for a $1.1 billion debtor-in-possession (DIP) revolving credit facility to supplement its working capital and provide additional liquidity while the company reorganizes.
The second-largest big-box retailer in the United States also received authority to:
- Make wage and salary payments
- Continue benefits for associates
- Honor customer programs such returns, exchanges and gift cards
"These approvals will help position us for a more successful holiday selling season and allow us to operate our business and serve our valued guests without interruption as we work to emerge from Chapter 11 as quickly as possible."
Common Stock Suspended
The New York Stock Exchange (NYSE) has also suspended the company's common stock. Circuit City says not being listed on the NYSE is not a default under the company's DIP revolving credit facility.
It's common stock is currently trading over the counter and is being quoted on the Pink Sheets service under the symbol CCTYQ. Circuit City says it will "take appropriate steps to maintain an active trading market for its common stock but can provide no assurance that there will be an active trading market."
Circuit City was not in compliance with NYSE price criteria for common stock because the average closing price of the company's common stock was less than $1 per share over a consecutive 30-day trading period.
Circuit City's Difficult 2008
 | Circuit City to Liquidate Remaining U.S. Stores Four liquidators to sell merchandise in remaining 567 U.S. stores. More than 35,000 jobs will reportedly be lost. Circuit City Receives Approval from Bankruptcy Court Circuit City has received approval for its $1.1 billion debtor-in-possession (DIP) revolving credit facility a day after voluntarily filing for Chapter 11 bankruptcy. Circuit City Files for Chapter 11 Bankruptcy Company says filing will allow it to continue business as usual, paying salaries and benefits and honoring returns and gift cards. Report: Circuit City to Close 155 Stores Big-box retailer is exiting several markets and has hired a team of liquidators to clear out the affected stores Circuit City Reports Non-Compliance With NYSE NYSE to assign ".BC" indicator to Circuit City's symbol to indicate it's below continued listing standards. Is this Finally It For Circuit City? How you can take advantage of the possible failure of the big-box retailer. Circuit City CEO Philip Schoonover Resigns The embattled CE retailer says Schoonover's resignation is effective immediately. He will be replaced by James Marcum. Circuit City Appoints 'Turnaround Executive,' Hints at Sale Company says new vice chairman James A. Marcum is highly experienced at turning retailers around. |
|
Subscribe to the CE Pro Newsletter
About the Author
Steve Crowe, Web Editor
Steve is an editor for cepro.com. He graduated from Emerson College with a B.A. in Journalism. He joined the CE Pro staff in 2008. Steve is also a freelance sports writer for The Boston Globe and other various publications.
Post a comment