Martin Lawrence Creditor Offers Reorganization Plan

Martin Lawrence Limited Editions Inc., the Van Nuys-based art gallery chain that is operating under Chapter 11 bankruptcy court protection, said that its largest secured creditor has come up with a reorganization plan that it hopes the company will support.

Chalk & Vermilion Fine Arts, LLC has offered to exchange its $1.2 million in debts for 100% equity ownership of Martin Lawrence, with another $525,000 to be set aside to help pay off unsecured debts.

Allen Baron, chairman of Martin Lawrence, said the company is still considering other alternatives.

The company filed for bankruptcy protection in December.