Because of extensive objections to its reorganization plan from some quarters, especially landlords with property claims and local taxing authorities in markets where it operates, yesterday’s hearing to rule on Kmart’s emergence from bankruptcy took longer than expected and has been adjourned until next Monday. The result is that Kmart will not get out of bankruptcy protection until early May, a little later than the late April emergence that had been predicted.
However, Kmart CEO Julian Day said he still expects the company’s reorganization plan to be approved, and the company to emerge from bankruptcy very soon.
The majority of Kmart’s creditors reportedly have approved the reorganization proposal.
However, Kmart CEO Julian Day said he still expects the company’s reorganization plan to be approved, and the company to emerge from bankruptcy very soon.
The majority of Kmart’s creditors reportedly have approved the reorganization proposal.
- KC's View:
- And then we’ll find out fairly quickly if Kmart has a real, viable strategy, or just a paper plan that won’t hold up to the high heat of competition.
