Posted: Nov 2, 2012 8:45 AM by Dennis Bragg - MTN News
MISSOULA - Attorneys working on the proposed sale of Vann's to a Texas company are scheduled to be in federal court Friday afternoon to see if the deal meets with a judge's approval. The Montana-based appliance and electronics store is working to survive in the face of a federal bankruptcy filed late last summer.
The case was initially filed as a Chapter 11 bankruptcy, which would have allowed for reorganization of the company's millions of dollars in debt while staying in business. However, the proceeding was converted to a Chapter 7 case as debtors press to get the finances worked out before the important holiday sales season, or force liquidation.
McMagic Partners stepped into the picture earlier this week with an offer to buy Vann's stores and operations across Montana for $4.5 million. Part of the deal would see McMagic offering current Vann's employees positions with the new company.
Both parties had until Thursday afternoon to firm up the deal. Now, the court-appointed trustee handling the case is ready to go back into a Missoula courtroom to get approval of the sale to McMagic, and setting up a framework to satisfy outstanding claims. Under terms of that order, the trustee would continue to monitor the sale as the deal goes through.
That hearing is set for 2 p.m.