KMART HITS CREDITORS SNAG IN CHAPTER 11 EXIT.(Brief Article)

HFN: The Weekly Newspaper for the Home Furnishing Network, April, 2003

TROY, Mich.-Kmart said it will emerge from Chapter 11 later than expected due to creditors' objections to the retailer's reorganization plan. The chain now expects to exit the week of May 5, as opposed to the original April 30 date.

A confirmation hearing with the bankruptcy court on Kmart's reorganization plan that was expected to be completed by April 16 could continue through about April 23, "because testimonies by people in the company are still continuing," Jack Ferry, a company spokesman, told HFN. "Creditors have filed objections to the plan of reorganization.

"It is our hope that [the reorganization plan] will be approved by the conclusion of the hearings," said Ferry.

Kmart creditors are composed of vendors, landlords and financial institutions.