Happy Kids' exclusive extension opposed by Deutsche Bank

By Caroline Salls

Pittsburgh, April 18 - Deutsche Bank Trust Co. Americas filed an objection to Happy Kids Inc.'s request to extend its exclusive periods to file a plan of reorganization and solicit votes Monday with the U.S. Bankruptcy Court for the Southern District of New York.

Deutsche Bank Trust said in the filing that the case is not complex enough to merit an extension.

"Despite having only a few major creditors, a handful of licenses and no major assets to deal with, the debtors have failed to circulate a plan term sheet or otherwise open plan negotiations," Deutsche said in the filing.

"In the nearly four months since filing their voluntary petitions for relief under Chapter 11 of the Bankruptcy Code, the debtors have made little or no visible progress in formulating a plan of reorganization. They have not even set a bar date."

According to the filing, Happy Kids' official committee of unsecured creditors asked the company to request a bar date last month.

Happy Kids filed for 60-day extensions to its exclusive periods last week, citing the complexity of the case.

The deadline for objections is April 18. A hearing is scheduled for April 21.

Declining sales and being overleveraged for several years led Happy Kids to file for bankruptcy on Jan. 4. Its Chapter 11 case number is 05-10016.

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