ALBUQUERQUE, N.M. — A federal bankruptcy judge will determine next month whether American Home Furniture‘s Chapter 11 bankruptcy case should continue as is or be dismissed or converted into a Chapter 7 case.
The U.S. Trustee argues the Albuquerque, N.M.-based retailer, which filed for Chapter 11 protection in March, is on the verge of becoming “administratively insolvent.” American Home counters that access to cash collateral and its decision to consolidate operations into a single store provide enough liquidity to continue reorganizing.
A hearing to determine the outcome, whichever is in the best interest of creditors, is set for Aug. 10 in the U.S. Bankruptcy Court for the District of New Mexico with Judge Robert H. Jacobvitz presiding…