PROCEEDINGS UNDER CHAPTER 11 AND RELATED FINANCINGS

9 Months Ended

Oct. 29, 2011

Reorganizations [Abstract]

Reorganization under Chapter 11 of US Bankruptcy Code Disclosure [Text Block]

NOTE 2 – PROCEEDINGS UNDER CHAPTER 11 AND RELATED FINANCINGS

On March 21, 2007, the Company filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code, in the United States Bankruptcy Court for the District of Delaware. On August 1, 2008 (the “Effective Date”), the Company’s Plan of Reorganization (the “Plan”) became effective and the Company emerged from bankruptcy protection. On August 17, 2010 the Final Decree was approved by the United State Bankruptcy Court closing the bankruptcy case of the Company. On October 17, 2011 the bankruptcy case of the Company was reopened, in order to settle the one remaining pre-petition claim, and closed on November 14, 2011.

As of the Effective Date, in general and except as otherwise provided under the Plan, the Company was discharged and released from all claims and interests in accordance with the Plan.  The Plan provides for payment in full in cash plus interest, as applicable, or reinstatement of allowed administrative, secured, priority, and general unsecured claims in addition to the retention of ownership by holders of equity interest in the Company.  Therefore, there were no impaired classes of creditors or stockholders.

FASB ASC 852, “Reorganizations” (“ASC 852”), provides financial reporting guidance for entities that are reorganizing under the United States Bankruptcy Code. The Company implemented this guidance for all periods presented.  Pursuant to ASC 852, estimated claims were presented as Liabilities Subject to Compromise due to the uncertainty of the eventual settlement amount.  Due to the Plan becoming effective and the claims reconciliation process being substantially complete, there was little uncertainty as to the total amount to be distributed under the Plan.  Therefore, after the Effective Date, pre-petition liabilities are no longer presented as Liabilities Subject to Compromise.

As of October 29, 2011, the Company has settled all known pre-petition obligations.

Pre-petition obligations (in thousands):

	October 29,		October 30,		January 29,
	2011		2010		2011
Real estate claims	$	-	$	5	$	5
Professional fee claim		-		725		725
Total pre-petition claims	$	-	$	730	$	730