Kmart gets extension of exclusivity period
July 25, 2002-- Home Textiles Today,
Troy, MI — In an effort to buy more time to formulate an effective reorganization plan, Kmart yesterday had its request approved by the courts, effectively extending the period in which the company has the exclusive right to file such a plan to Feb. 28.
Had the U.S. Bankruptcy Court for the Northern District of Illinois not approved the request, the retailer would have been forced to file a plan of reorganization by Aug. 7.
The court also granted Kmart a number of other orders, such as the assumption of an additional key brand license agreement, the sale of a corporate aircraft and the retention of a mediator to assist in the deposition of personal injury claims against Kmart.