KB Toys asks for extension to exclusivity periods

By Jeff Pines

Washington, May 7 - KB Toys Inc. asked the court to extend its exclusive period to file a reorganization plan to Sept. 13 and its period to solicit votes until Nov. 12, according to a filing Friday filing with the U.S. Bankruptcy Court for the District of Delaware. Its exclusive period to file a plan is scheduled to end May 13 and its period to solicit votes ends July 12.

The company said that even though it has closed 389 of the planned 400 stores it plans to close, sold its online business and reduced overhead by $25 million it needs more time to develop and propose its reorganization plan.

KB notes its case is large and complex involving 70 debtors with total assets of $507 million and liabilities of $461 million.

When it filed for bankruptcy, it ran more than 1,200 stores and had 8,000-22,000 employees depending upon the season.

Significant issues still remain to be resolved before a plan can be filed, and KB said that neither it nor anyone else would be in a position to file a confirmable plan before the Sept. 13.

A May 25 hearing is scheduled.

The Pittsfield, Mass.-based toy retailer filed for bankruptcy on Jan. 14. KB's Chapter 11 case number is 04-10120.

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