IN RE HEILIG-MEYERS COMPANY

DOUGLAS TICE, Chief Judge, Bankruptcy

This matter comes before the Court on the Third Omnibus Objection to Claims of Miscellaneous Priority (the "Objection") filed by the above-captioned Debtors (the "Debtors"). The Court having reviewed the Objection and having heard the statement of counsel in support of the relief requested in the Objection; the Court finding that (a) it has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334, (b) this is a core proceeding pursuant to 28 U.S.C. § 157(b)(2) and (c) notice of the Objection (and service of the proposed order) was sufficient under the circumstances; and the Court having determined that the legal and factual bases set forth in the Objection establish just cause for the relief herein granted; it is hereby

ORDERED as follows:

1. Except as otherwise provided herein or separate order of this Court, the Objection is SUSTAINED.

2. Capitalized terms not otherwise defined herein have the meanings given to them in the Objection. This Order affects only the claims identified on Exhibit A to the Objection andExhibit 1 attached hereto.

3. Except as otherwise provided herein or separate order of this Court, the Duplicate Claims identified on Exhibit A to the Objection and Exhibit 1 attached hereto are hereby disallowed in their entirety.

4. Except as otherwise provided herein or separate order of this Court, the Superseded Claims identified on Exhibit A to the Objection and Exhibit 1 attached hereto are hereby disallowed in their entirety.

5. Except as otherwise provided herein or separate order of this Court, the Reassigned Claims are hereby deemed filed against the appropriate Debtor identified in the "Comments" column identified on Exhibit A to the Objection and Exhibit 1 attached hereto. The Debtors shall maintain the right to object to the Reassigned Claims on any other grounds at any time.

6. Except as otherwise provided herein or separate order of this Court, the Reduced Claims are hereby reduced as shown in the "Allowed Amount" column identified on Exhibit A to the Objection and Exhibit 1 attached hereto. The Debtors shall maintain the right to object to the Reduced Claims on any other grounds at any time.

7. Except as otherwise provided herein or separate order of this Court, the Reassigned and Reduced Claims are hereby deemed filed against the appropriate Debtor and reduced as shown in the "Comments" and "Allowed Amount" columns, respectively, onExhibit A to the Objection and Exhibit 1 attached hereto. The Debtors shall maintain the right to object to the Reassigned and Reduced Claims on any other grounds at any time.

8. Except as otherwise provided herein or separate order of this Court, the No Liability Claims identified on Exhibit A to the Objection are hereby disallowed in their entirety.

9. The Debtors shall maintain the right to object to any "Surviving Claim" referenced in the "Comments" column on Exhibit A to the Objection and Exhibit 1 attached hereto on any other grounds at any time.

10. The Objection is withdrawn as it relates to those claims identified in the "Comments" column on Exhibit 1 to this Order.

11. Except for Claim No. 006461 of Standard Furniture Manufacturing Co., Inc., which is expressly allowed as a general unsecured claim, the Debtors maintain the right to object further to any and all claims, whether or not the subject of this Objection, on any grounds as allowed by applicable law.

The Clerk is directed to send a copy of this Order to the parties on the attached Service List whose claims have been treated in a manner different from the Objection.

EXHIBIT 1 TOTAL CLAIM NAME CLAIM CLAIM AMOUNT ALLOWED NUMBER DATE CLAIMED AMOUNT COMMENTS EASTERN STATES PROPERTIES 002025 3/9/01 $117,031.37 $104,575.86 Reduced Claim. CORINTHIAN FURNITURE 004664 7/3/01 $113,820.30 N/A OBJECTION WITHDRAWN. EXEL DIRECT, INC., (MERCHANTS HM 006128 7/13/01 $463,633.71 $463,633.71 Reassigned Claim. Proper Debtor is RoomStore. DELIVERY) PACIFIC GAS ELECTRIC COMPANY 001285 11/20/00 $137,205.77 N/A OBJECTION WITHDRAWN. SHELBYVILLE INDIANA HM2, INC. 007034 7/16/01 $137,543.02 $125,143.02 Reduced Claim. SOCO GROUP INC., THE 002066 3/29/01 $89,300.30 N/A OBJECTION WITHDRAWN. STANDARD FURNITURE MANUFACTURING CO., 006461 7/13/01 $641,554.31 $548,010.64 Reduced Claim. INC. KAMIN, DANIEL G. McCOMB LLC 001978 2/27/01 $102,609.63 N/A OBJECTION WITHDRAWN. KAMIN, DANIEL G. FREEPORT LLC 001983 2/27/01 $101,084.98 N/A OBJECTION WITHDRAWN. LABCD RENFROW FAMILY PARTNERSHIP 006141 7/13/01 $111,220.2 N/A OBJECTION WITHDRAWN. CHROMCRAFT FURNITURE 000356 9/29/00 $158,886.45 $0.00 Superseded Claim. Surviving Claim #005540 in the amount of $156,688.63.