WILMINGTON, DE - Two former Furniture Brands International executives will receive up to $1 million in insurance payments to help defray legal and related defense costs associated with the bankrupt residential furniture corporation.
U.S. Bankruptcy Judge Christopher Sontchi granted the request by former FBI Chairman and CEO Ralph Scozzafava and Vance Johnston, former CFO and senior vice president on December 27. In granting the motion, Judge Sontchi noted "...the relief requested is in the motion is in the best interests of the debtors' estates, their creditors, and other parties in interest..." A hearing to release additional management liability insurance funds up to $15 million is set for January 7 in U.S. Bankruptcy Court for the District of Delaware, the Winston-Salem Journal reports.
Prior to filing for Chapter 11 in September 2013, Furniture Brands International was considered one of the nation's largest furniture manufacturers, with brands including Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and LaBarge. The assets for the company were sold to KPS Capital in November for $280 million and immediately following the November 25 acquisition, KPS renamed the company Heritage Home Group and named Ira Glazer the new president and CEO.
Court filings for Furniture Brands International list the debtor name as FBI Wind Down Inc., a change approved November 22 by the Bankruptcy Court for the District of Delaware. Similar debtor name changes also were approved for FBI's affiliates.