Home Interiors' trustee appointment motion approved; Faulkner named to post

By Caroline Salls

Pittsburgh, Nov. 26 - Home Interiors & Gifts, Inc.'s motion for appointment of a Chapter 11 trustee to oversee its bankruptcy case was approved Tuesday by the U.S. Bankruptcy Court for the Northern District of Texas.

Dennis Faulkner was appointed to the post on Tuesday.

"Appointing a Chapter 11 trustee will cut the Gordian knot that entangles these cases by enabling the bankruptcy process to move forward and avoid the delays being caused by the disputes between the debtors' creditors," the company said in the motion.

"Sidestepping this destructive brinksmanship will maximize the value of the debtors' estates and minimize the expenses that the debtors' estates will incur."

According to the motion, the integrity of the company's chief restructuring officer and the asset sale process had been called into question, and Home Interiors' official committee of unsecured creditors alleged that the company was inclined to only obtain bids from insiders.

Home Interiors said appointing a Chapter 11 trustee would resolve this concern "by making those insiders into outsiders, thereby preventing the sales process from being chilled or manipulated to serve the ends of inter-creditor litigation."

Home Interiors & Gifts is a Dallas-based integrated manufacturer and distributor of home decorative accessories. The company filed for bankruptcy on April 29, 2008. Its Chapter 11 case number is 08-31961.

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