Chi-Chi's wants approval for more settlement payments
Ben Fidler
Feb-17-2005
Chi-Chiës Inc. has asked for the court's approval for a sixth round of settlement payments regarding the hepatitis A outbreak that helped cause its bankruptcy.
In a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware in Wilmington, the Tex-Mex requests the ability to pay $1.2 million settle an additional 17 hepatitis claims.
Court approval is needed for claims exceeding $35,000, of which 56 have already been made.
Chi-Chi's has settled a total of 411 hepatitis related claims, stemming from an outbreak at one of its restaurants that the company has since blamed on tainted green onions imported from Mexico.
Objections are due Feb. 22, with a hearing on the company's request slated for March 8.
Chi-Chi's filed for bankruptcy on Oct. 8, 2003 at the Wilmington court.