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Sears requests exclusivity extension amid dispute over sale agreement
By Caroline Salls
Pittsburgh, April 12 – Sears Holdings Corp. is seeking an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.
Sears is asking the court to extend its exclusive plan-filing period by two months through June 12 and the solicitation period through Aug. 13.
“The debtors are seeking another modest extension of the exclusive periods at this critical juncture of their Chapter 11 cases in furtherance of their fiduciary duties and to continue to try to broker a consensual Chapter 11 plan among their various stakeholders,” the motion said.
The company said it has made significant progress on a Chapter 11 plan since its first exclusivity extension was granted, and it has drafted a proposed plan and disclosure statement and distributed the plan to key stakeholders.
Since then, Sears said the parties have conducted numerous calls and in-person meetings to negotiate the terms of the plan.
However, the company said it had to divert limited resources to take action to enforce the terms of its asset purchase agreement to ensure that the assets belonging to the Sears estates are rightfully turned over to the debtors.
“The debtors have been pressing forward with their Chapter 11 plan negotiations while simultaneously pursuing these assets,” the motion said.
“The outcome of this dispute will impact the analysis underpinning the plan, further bolstering the debtors’ need for a modest extension of the exclusive periods.”
A hearing is scheduled for May 16.
Sears is a retailer based in Hoffman Estates, Ill. The company filed bankruptcy on Oct. 15, under Chapter 11 case number 18-23538.
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