In re: HEILIG-MEYERS COMPANY, et al., Chapter 11, Debtors

Case No. 00-34533 Jointly AdministeredUnited States Bankruptcy Court, E.D. Virginia.
May 24, 2004

Bruce H. Matson, Troy Savenko, Esquire, Katherine Macaulay Mueller, LeCLAIR RYAN, Richmond, Virginia, for the Debtors

Jeffrey A. Liesemer, Esquire, The Liesemer Law Firm PLLC, Alexandria, Virginia, for Kmart Corporation

Dawn R. Copley, Esquire, Dickinson Wright PLLC, Detroit, Michigan, for Kmart Corporation

CONSENT ORDER RESOLVING PROOFS OF CLAIMS FILED BY KMART CORPORATION
DOUGLAS TICE, Chief Judge, Bankruptcy

This matter coming before the Court on the Debtors’ First Omnibus Objection to Certain Administrative Claims (the “Objection”) filed by Heilig-Meyers Company, Heilig-Meyers Furniture Company, Heilig-Meyers Furniture West, Inc., HMY Star, Inc., HMY RoomStore, Inc., and MacSaver Financial Services, Inc., by counsel (collectively, the “Debtors”); the Court having reviewed the Objection; the Court finding that the Debtors and Kmart Corporation (“Kmart”) have agreed to a complete resolution of Kmart’s claims, including claims contained in the Objection and all remaining claims being asserted by Kmart in this bankruptcy case; the Court finding that (a) the Court has jurisdiction over this matter pursuant to 28 U.S.C. § 157 and 1334, (b) this is a core proceeding pursuant to 28 U.S.C. § 157(b)(2) and (c) notice of the Objection (and service of the proposed order) was sufficient under the circumstances; and the Court having determined that the legal and factual bases set forth in the Objection and this Order establish just cause for the relief herein granted; it is hereby

STIPULATED, AGREED and ORDERED as follows:

1. Claim numbers 001455, 002094, 002176, 002230 and 002324 shall be disallowed in their entirety.

2. Claim number 001442 shall be allowed as an administrative claim in the amount of $3,127.47 and shall represent full and complete satisfaction of any and claims relating to the Ruston lease for Store No. 1042, the Live Oak lease for Store No. 675, and the Newberry lease for Store No. 109.

3. Claim number 010455 relating to the Hillsboro lease, Store No. 383 (the “Hillsboro Lease”), shall be allowed as a general unsecured claim in the amount of $54,641.84, inclusive of pre-petition amounts owed ($6,147.22) and a lease rejection claim ($48,494.62). This shall be a full and complete resolution of any and claims relating to the Hillsboro Lease.

4. Claim number 0010811 relating to the Macomb lease, Store No. 647 (the “Macomb Lease”), shall be allowed as follows: (i) an administrative claim in the amount of in the amounts of $3,049.75; and (ii) a general unsecured claim in the amount of $50,461.68, inclusive of pre-petition amounts owed ($8,975.92) and a lease rejection claim ($49,565.76). This shall be a full and complete resolution of any and claims relating to the Macomb Lease.

5. Claim No. 0010439 relating to the West Monroe lease, Store No. 633 (the “West Monroe Lease”), shall be allowed as follows: an administrative claim in the amount of $1,084.46; and (ii) a general unsecured claim in the amount of $71,572.01 including pre-petition amounts owed ($3,560.21) and a lease rejection claim ($68,011.80). This shall be a full and complete resolution of any and claims relating to the West Monroe Lease.

6. Claim No. 0010456 relating to the Canton lease, Store No. 646 (the “Canton Lease”), shall be allowed as a general unsecured claim in the amount of $45,964.26, inclusive of pre-petition amounts owed ($1,319.10) and a lease rejection claim ($44,645.16). This shall be a full and complete resolution of any and claims relating to the Canton Lease.

The Clerk is directed to send a copy of this Order to the undersigned Counsel upon entry.