ABERDEEN, Miss. (WTVA) — A federal bankruptcy judge ruled Wednesday the liquidation of United Furniture will be through Chapter 11 bankruptcy with a trustee overseeing the process.
Attorney Philip Hearn represents hundreds of former United Furniture employees. He said this is the best option for his clients to get the most money out of the liquidation.
Wells Fargo was seeking a Chapter 7 bankruptcy, which would have led to a faster liquidation but possibly less money.
United Furniture wanted a Chapter 11 bankruptcy but with company executives by themselves deciding the best way to get rid of the assets.
Regardless of the judge's ruling, the payouts will not happen overnight. It can actually take months for United to begin paying back people and vendors.
“Wells Fargo is pleased and agrees with Judge Maddox’s ruling to appoint a Chapter 11 trustee," the company stated. "This thoughtful decision should offer a transparent, fair, and orderly process to administer the estate and maximize asset value to help all of UFI’s customers, vendors and creditors.”