KB Toys, creditors committee agree to extend exclusivity

By Jeff Pines

Washington, Nov. 11 - KB Toys Inc. and its unsecured creditors' committee agreed to extend the company's exclusive right to file a reorganization plan to Feb. 15 and to extend the toy retailer's exclusive right to solicit votes until April 16.

The agreement was filed with the U.S. Bankruptcy Court for the District of Delaware Thursday.

Under the deal, if the Pittsfield, Mass.-based company files a reorganization plan not supported by the committee during the extension, then the committee will have the authority to file its own competing plan and solicit votes for that plan.

If approved, this extension will be KB Toys' fourth.

The company had asked for an extension to Jan. 14 from Nov. 17 and to extend its exclusive right to solicit votes for the plan until March 14 from Jan. 16.

KB Toys filed for bankruptcy on Jan. 14, 2004. Its Chapter 11 case number is 04-10120.

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