KB Toys asks court for permission to pay due diligence fee

By Jeff Pines

Washington, Nov. 24 - KB Toys Inc. asked the U.S. Bankruptcy Court for the District of Delaware Wednesday to pay Angelo Gordon & Co. LP up to $60,000 for a due diligence fee so it can provide the toy retailer with a firm commitment letter for an exit facility.

Angelo Gordon, a New York-based investment firm, is not prepared to go any further unless KB Toys pays for it, the company said.

The Pittsfield, Mass.-based company said it believes Angelo Gordon is one of the largest holders of unsecured claims against the company.

A Dec. 13 hearing is scheduled.

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

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