MTS' landlords file objection to reorganization plan

By Jeff Pines

Washington, March 5 - MTS Inc.'s landlords filed an objection to the company's plan of reorganization because they cannot tell which store leases the company plans to keep and which it plans to pitch.

They added that for those leases MTS does intend to reject, there are no procedures for rejection or turning over the space, they said in a March 5 filing with the U.S. Bankruptcy Court for the District of Delaware.

MTS, which owns Tower Records, has also filed a motion for an extension of time to assume or reject the commercial leases until June 30, they said.

"There is no legal basis upon which the bankruptcy court can authorize the extension of time to assume or reject the leases beyond confirmation of the plan," they said.

The landlords are Federal Realty Investment Trust, Developers Diversified Realty Corp., Kravco Co., and New Plan Excel Realty Trust Inc.

A hearing on the disclosure statement and reorganization plan is scheduled for March 15.

MTS filed for Chapter 11 on Feb. 9 as the final phase of its financial restructuring, which it started in the third quarter of 2001. Its Chapter 11 case number is 04-10394.

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