IN RE HEILIG-MEYERS COMPANY

DOUGLAS TICE, Chief Judge, Bankruptcy

This matter came before the Court pursuant to the Motion for Reconsideration and Amendment to the Court's Order Sustaining Debtors' Fourth Omnibus Objection (the "Motion") filed by the National Labor Relations Board ("NLRB") on September 24, 2004, docket no. 5240. It appears to the Court that the legal and factual bases set forth in the Motion and at the Hearing establish just cause for the relief granted herein and that the undersigned parties consent to the entry hereof; it is hereby

FOUND AND DETERMINED THAT:

A. On July 19, 2004, the Debtors filed the Debtors' Fourth Omnibus Objection to Certain Administrative Claims and Other Related Claims, pursuant to which the Debtors sought to disallow NLRB's claim no. 011140 (the "NLRB Claim");

B. On September 16, 2004, the Court issued its Order Sustaining Debtors' Fourth Omnibus Objection to Certain Administrative Claims and Other Related Claims, thereby disallowing the NLRB Claim;

C. The Debtors have agreed, without any objection from the Official Committee of Unsecured Creditors, that (i) the Motion should be granted and, (ii) that the NLRB Claim should be reinstated as a disputed claim without prejudice to the ability of the Debtors to further object thereto;

D. The Debtors reserve the right to object to the NLRB Claim pending the final outcome of the Debtors' appeal in HMY Roomstore, Inc., Case 5-CA-30809 (N.L.R.B. Div. of Judges) ( 2004 WL 1074033); and

E. The Debtors have agreed to reserve an amount equal to the NLRB Claim in the Administrative Claims Reserve.

The Court finding the foregoing, it is hereby

ORDERED as follows:

1. The Motion is hereby GRANTED.

2. Capitalized terms not otherwise defined herein shall have the meanings given to them in the Motion.

3. The NLRB Claim is reinstated as a disputed claim without prejudice to the ability of the Debtors to further object to the claim.

4. The Debtors shall reserve an amount equal to the NLRB Claim in the administrative claims reserve as contemplated by the Joint Plan of Reorganization Proposed By Heilig-Meyers Company, et al., and the Official Committee of Unsecured Creditors filed on September 16, 2004.

Upon entry, the clerk shall serve a copy of this Order to those parties on the Service List attached hereto.