Kmart Corp. (Troy, Mich.) was granted an extension of exclusivity in bankruptcy court yesterday.
The bankrupt retailer will now have until Feb. 8, 2003, the exclusive right to file a plan of reorganization, without interference from lenders, creditors or other interested parties. The right of exclusivity had been scheduled to expire on Aug. 7, 2002.
The Court also granted a number of other orders sought by Kmart, including 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 disposition of personal injury claims against Kmart.
“We are very pleased to have received the support of the Court and our creditor groups to extend our exclusivity rights,” said chairman and ceo James Adamson. “With this extension, we can focus on our top priorities of driving sales and reducing costs in the second half of 2002. We believe the information we gain from this year's back-to-school and holiday seasons will be invaluable as we develop a long-term strategic business plan and plan of reorganization for Kmart.”
The ruling will also allow Kmart to assume the license agreement for its proprietary Route 66 apparel line. The Court previously approved the assumption of license agreements for the Martha Stewart Everyday, Jaclyn Smith, Kathy Ireland, Disney, Joe Boxer, Curtis Mathes and Sesame Street brands.