KB Toys obtains extension to exclusive periods

New York, May 26 - KB Toys Inc. obtained an extension to its exclusive periods in its Chapter 11 case.

The Pittsfield, Mass.-based toy retailer now has until Aug. 13 to propose a plan of reorganization and Oct. 12 to solicit votes, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The period is shorter than requested. KB Toys had wanted deadlines of Sept. 13 and Nov. 12, respectively.

Its exclusive period to file a plan was scheduled to end May 13, and its period to solicit votes ends July 12.

When it asked for the extension, 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 to 22,000 employees depending upon the season.

Significant issues still remain to be resolved before a plan can be filed.

The company filed for bankruptcy on Jan. 14. KB's Chapter 11 case number is 04-10120.

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