KB Toys committee seeks information from Big Lots, CSFB on sale to Bain

By Jeff Pines

Washington, June 22 - KB Toys, Inc.'s official unsecured creditors' committee wants more information on Big Lots Inc.'s sale of the toy company to Bain Capital for $305 million in 2000.

In a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware, the committee asked the court for an order to force Big Lots and its banker for the deal Credit Suisse First Boston to produce the requested documents. Big Lots was called Consolidated Stores Corp. at the time.

Big Lots, which is a member of the committee, said a confidentiality agreement prohibits it from releasing any documents and Credit Suisse First Boston said its policy is not to release any documents without a subpoena or a court order.

The committee wants detailed financial monthly and annual statements for KB Toys from 1999 and annual statements from 1997-2000, as well as CSFB's financial projections, contact and prospective buyer log with details of indications of interest, copies of all offers made for the business, and documents directly related to Bain's purchase of KB Toys.

In addition, the committee also wants documents related to an April 23, 2002 redemption, repurchase and equity agreement between the toy retailer and Bain and its associates.

Pittsfield, Mass.-based KB Toys filed for bankruptcy on Jan. 14, 2004. The company's Chapter 11 case number is 04-10120.

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