LEXINGTON, Ky. — A bankruptcy judge Thursday gave preliminary approval to the piecemeal liquidation of a bookstore company founded by former Gov. Wallace Wilkinson.

Wilkinson

        That was the essence of a verbal order by U.S. Bankruptcy Judge William S. Howard at a hearing pitting Wallace's Bookstores Inc. against its creditors and lawyers for dozens of colleges and universities whose bookstores were operated by the company.

        The corporation filed for bankruptcy Feb. 28, three weeks after Mr. Wilkinson himself asked the bankruptcy court for protection from creditors who claim he defaulted on personal loans of $300 million or more.

        The corporation listed debts of $152 million against assets of about $135 million. It later asserted that the assets figure was about $19 million too high.

        Until recently, the company operated 91 bookstores on 60 campuses.

        By this week, however, the total was down to 49 campus stores, and Judge Howard's verbal order permitted the sale of 31. Three Kentucky schools were in that group: the University of Louisville, Eastern Kentucky University and the Louisville Presbyterian Theological Seminary.

        The potential value of the liquidation was not yet known.

        Still at issue is the speed with which the liquidation should be conducted. The schools want a sale as quickly as possible because books must soon be ordered for summer and fall terms.

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