True Value Company, L.L.C. and its affiliates have filed a motion in Delaware bankruptcy court seeking to appoint James P. Carroll as an authorized representative for its retirees, according to court documents filed on February 14, 2025.
The hardware retailer, which filed for Chapter 11 bankruptcy protection in October 2024 (Case No. 24-12337), is requesting the appointment after the U.S. Trustee was unable to form a retiree committee despite previous court authorization. The company is represented by Skadden, Arps, Slate, Meagher & Flom LLP as primary counsel.
The motion comes as True Value, which sold substantially all of its assets to Do it Best Corp. in November 2024, works to address its retiree benefit obligations affecting approximately 300 former employees. The company maintains several retiree plans, including medical, dental, vision, life insurance, and death benefits.
According to the filing, True Value believes most of its retiree plans are unvested and can be terminated after the plan's effective date. However, certain plans, including a death benefit plan affecting about 260 retirees (known as the "Servistar Plan") and post-employment medical benefits for one beneficiary, may be vested and require special handling under bankruptcy law.
Carroll, if appointed, would serve as a fiduciary to negotiate modifications to the retiree plans and oversee a claims resolution process. The company has proposed establishing a reserve funded with the net present cash value of future entitlements under the vested plans.
The motion is scheduled for a hearing on February 27, 2025, with objections due by February 21, 2025.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 13 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.
Link to full document: Debtors' Motion for Entry of an Order (A) Appointing James P. Carroll as the Authorized Representative of Retirees or Their Beneficiaries Under 11 U.S.C. §§ 105(A) and 1114 and (B) Granting Related Relief
Document length: 13 pages