USA Discounters Ltd. made its debut in bankruptcy court Wednesday seeking to use its lenders' cash as the retailer winds down business amid a multistate probe into its business practices, Dow Jones Daily Bankruptcy Review reported today. The Norfolk, Va., company, a retailer accused of misleading U.S. service members, filed for bankruptcy protection on Monday and plans to liquidate its remaining assets and distribute the proceeds to creditors. Bankruptcy Judge Christopher Sontchi said that USA Discounters could use its lenders' cash to pay its remaining employees who are in charge of liquidating the retailer's remaining assets. Those assets comprise $114 million in accounts receivable and seven still-open Fletcher's Jewelers stores.
