HARTFORD, Conn. (Legal Newsline) - Connecticut Attorney General Richard Blumenthal has reached a preliminary agreement with a bankrupt company to honor at least 50 percent of the value of unused gift cards.

Ski Market Ltd., after filing for Chapter 11 bankruptcy in December, had originally refused to honor the unused gift cards.

"Ski Market has agreed to give loyal consumers a lift - heeding our call and recognizing that consumer trust is imperative to Ski Market's future success," Blumenthal said.

"This preliminary agreement is a partial victory, and my office plans to continue working to assist consumers seeking additional reimbursements."

Blumenthal filed a motion last week with the U.S. Bankruptcy Court seeking to compel Ski Market to honor approximately $200,000 worth or more of the remaining unused gift cards sold to consumers.

Ski Market, in initial public statements following its announcement of filing Chapter 11 bankruptcy, had rejected the cards entirely, saying that its main secured creditor did not authorize the use of the cards.

"This action is a positive first step, but not the last in our battle on behalf of consumers with unused Ski Market gift cards," Blumenthal said. "We urge that consumers take advantage of it as soon as possible, assuming the bankruptcy court approves it."

The bankruptcy court must still approve this new deal, which would allow consumers to use their cards for up to 50 percent of their value at any Ski Market store from Saturday-Jan. 24.

"I am pleased that Ski Market has agreed that its financial avalanche should not bury its promises to consumers," Blumenthal said.

"We urgently warned Ski Market that it would doom itself by denying gift cards - destroying consumer confidence and deterring new buyers for the company assets. Ski Market is rightfully realizing its responsibilities to consumers. My office will continue to monitor this bankruptcy proceeding and fight for further consumer protections."