Kirk confirmation hearing postponed because of anticipated objections

By Alice Popovici

New York, Sept. 3 - Kirk Corp.'s confirmation hearing for its plan of reorganization was postponed to Sept. 17 from its original scheduled time Wednesday because the company anticipated lenders would "object to the disclosure statement and use that as a way to prevent confirmation," said Forrest Lammiman, lead bankruptcy and restructuring attorney with Chicago law firm Meltzer, Purtill & Stelle LLC.

The company's lenders voted against the disclosure statement but withdrew their opposition after an agreement was reached. Lammiman said they are expected to oppose the plan's confirmation.

Though hearings for a company's disclosure statement and plan of reorganization are typically scheduled one month apart, in Kirk's case they were set on the same day in order to speed up the process, Lammiman told Prospect News.

"But at our request we delinked them again because there were too many things yet to be done."

Kirk, an employee-owned homebuilder based in Streamwood, Ill., filed for bankruptcy on May 12. Its Chapter 11 case number is 0917236.

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