A group of Christian publishers sue Family Christian Stores over bankruptcy plan
Notice that the previous article on this one noted that they started with $34 million in debt in 2012. Now, a little over two years later, they’re $97 million in debt—an additional $200k/store. We are talking a pretty dismal record here, and hopefully the bankruptcy court takes this into account.
Aspiring to be a stick in the mud.
Family Christian Stores Withdraws Bankruptcy Plan
The nation’s largest chain of Christian retail stores has withdrawn its controversial bankruptcy plan, according to a court filing yesterday. The decision by Family Christian Stores (FCS) comes after dozens of Christian publishers sued the ministry over $20 million of consignment inventory, and both the US Trustee and creditors committee objected to how the sale plan would allegedly benefit one of FCS’ owners. The filing offers no rationale for the decision. Commercial Bankruptcy Investor described it as a “surprising move.” C. Scott Pryor, who teaches on bankruptcy at Regent University’s law school, wrote that FCS had “bowed to the inevitable” amid skepticism of the “close relationship between debtor, lender, and buyer.” The withdrawal does not mean that FCS will stop seeking Chapter 11 bankruptcy protection entirely, but that it is no longer pursuing protection under section 363. Normally, creditors need to approve a bankruptcy reorganization plan. But under section 363, only the bankruptcy court judge has to approve the sale of the business.
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