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hhgregg Bankruptcy Settlement Approval Sought

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hhgregg and its official committee of unsecured creditors filed with the U.S. Bankruptcy Court a motion for an order approving the settlement of claims of Synchrony Bank.

According to documents filed with the Court, “The Debtors shall, on or before the first business day after entry of an order by the Bankruptcy Court approving and authorizing the Debtors to enter into the Settlement Agreement (the ‘Settlement Order’), (a) deliver to Synchrony a copy of the Settlement Agreement executed on behalf of the Debtors and the Committee, and (b) pay Synchrony the amount of $73,602.53, representing customer payments paid to the Debtors but intended for Synchrony; Synchrony shall, upon entry of the Settlement Order, be allowed an administrative-expense claim against the Debtors’ chapter 11 bankruptcy estates under section 503(b) of the Bankruptcy Code in the amount of $1,925,000; Synchrony’s allowed administrative-expense claim…shall be paid as follows: (i) The amount of $500,000 shall be included in, and for all purposes treated as, a ‘GOB Administrative Claim,’….The balance of Synchrony’s allowed administrative-expense claim, in the amount of $1,425,000, shall be included in and for all purposes treated as a ‘Non-GOB Administrative Claim,’….After the application of those credits, letter of credit, amounts, and proceeds, Synchrony shall, upon the Bankruptcy Court’s approval of the Settlement Agreement, have an unsecured, non-priority, and non-administrative-expense claim in the Bankruptcy Cases in the amount of $7,496,175.80.”

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