Kmart's confirmation hearing delayed until Monday, may delay emergence from bankruptcy

By Carlise Newman

Chicago, April 16 - Kmart Corp. told Prospect News Wednesday that the confirmation hearing for approval of its plan of reorganization will be delayed until Monday, and is expected to continue through Tuesday and Wednesday.

After about seven hours in court on Tuesday and with the Passover, Good Friday and Easter holidays ahead, U.S. Bankruptcy Judge Susan Sonderby adjourned the hearing until next Monday.

"With Passover and Easter ahead, the judge decided to delay the hearings," said Kmart's spokesperson. "It's taking longer but it's a hearing. There are lots of testimonies to get through."

On Friday, Kmart said certain impaired classes for some of the company's subsidiaries voted to reject the plan. The company said it does not believe that these votes against the plan are material.

The company's target for emerging from bankruptcy is April 30; with the hearing delayed as late as possibly April 23, the spokesperson said Kmart may not emerge until May.

Struggling to compete with bigger discounters Wal-Mart Stores Inc. and Target Corp., Kmart filed for Chapter 11 bankruptcy protection in January 2002 in the U.S. Bankruptcy Court for the District of Chicago.

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