KB Toys lessor objects to disclosure statement

By Caroline Salls

Pittsburgh, June 30 - KB Toys, Inc.'s disclosure statement for its plan of reorganization drew objection from mall property lessor Mills Corp., according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

In its objection, Mills said the company has not disclosed the number of unexpired leases it intends to assume in connection with the plan, the specific leases it intends to assume in connection with the plan, the amount of cure payments KB Toys intends to pay in connection with the assumption of its leases or any adequate assurance of future performance information regarding the company's ability to perform under assumed leases.

"Without disclosure of such information, Mills will not be in a position to determine whether it can or should vote to accept the plan and/or it should object to the plan when the time to do so arises," Mills said in the filing.

A hearing on the disclosure statement is scheduled for July 14.

KB Toys, a Pittsfield, Mass.-based toy retailer, filed for bankruptcy on Jan. 14, 2004. Its Chapter 11 case number is 04-10120.

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