Matter of Libson Shops, Inc.

MEMORANDUM

JAMES J. BARTA, Bankruptcy Judge.

The debtor-in-possession and the Creditors Committee in this Chapter 11 case have filed a joint application to approve a bulk sale of the debtor’s merchandise to one Jerome Schottenstein. No written contract has been submitted to the Court, but the application contains an outline of the parties’ agreement. In addition to the terms of the sale, the application refers to a proposed compromise of certain claims by and against the debtor’s shareholders, officers, and directors, and a statement as to possible dividend to general creditors if the bulk sale…