Bankruptcy & Restructuring News Roundup
Penn Camera Assets Sold, Chapter 11 Being Dismissed
Assets having been sold early this year, the Chapter 11 reorganization for Penn Camera Exchange Inc. will be dismissed as the result of a ruling last week from the U.S. Bankruptcy Court in Greenbelt, Maryland.
The camera-equipment retailer from Beltsville, Maryland, was authorized in February to sell the assets to Calumet Photographic Inc. for $250,000 cash and a $250,000 note.
In addition, the buyer assumed as much as $100,000 in liabilities.
The purchased assets included leases for three stores.
The company and the official creditors’ committee realized that there wouldn’t be enough cash left after the secured creditor was paid in full to cover full payment on claims entitled to priority, including expenses of the Chapter 11 effort.