Major German department store chain Galeria Karstadt Kaufhof has avoided insolvency as creditors approved a plan to reorganize the ailing business, insolvency administrator Stefan Denkhaus announced on Tuesday. The insolvency proceedings are thus formally close to being finalized. The district court in Essen, where the company’s headquarters are located, can open the proceedings in June. Galeria’s new owners, a consortium consisting of US private equity firm NRDC and German entrepreneur Bernd Beetz’s BB Kapital SA, face a difficult task in improving the fortunes of a business undergoing its th…