KB Toys creditors seek OK for legal moves against directors, officers

By Jennifer Lanning Drey

Portland, Ore., May 15 - KB Toys, Inc.'s official committee of unsecured creditors requested court approval to prosecute causes of action against some of the company's directors and officers on behalf of the company's estate, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The proposed causes of action against the directors and officers relate to the company's overadvance facility, which forms the basis for an approximately $98 million secured claim asserted by Prentice Capital entities in the company's bankruptcy case, the filing said.

The creditors have also filed an adversary complaint against the company.

A hearing is scheduled for June 17.

KB Toys, a Pittsfield, Mass., mall-based toy retailer, filed for bankruptcy on Dec. 11. Its Chapter 11 case number is 08-13269.

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