Tower Records Slams Creditors’ Plan
Tower Records on Monday disputed its unsecured creditors’ committee’s opposition to the bankrupt music distributor’s liquidation plan, saying that the opposition would lead to a “litigation free-for-all,” Bankruptcy Law360 reported yesterday. Tower, which has no intention of reorganizing, is currently in the last stages of liquidating its assets. However, it is still handling a number of critical issues, including a lawsuit recently filed by a vendor group. On May 22, the company offered a modified version of both its plan and its disclosure statement in an effort to quell protests by its various creditors over the original plan. However, the new plan was not enough to satisfy the unsecured creditors’ committee, who asked the court a day later to terminate Tower Records’ exclusivity period and allow the committee to file a competing plan.

