Kmart Reorganizing
Troy, Mich.–based Kmart filed a reorganization plan with the U.S. Bankruptcy Court for the Northern District of Illinois. The plan includes the results of a poll of the company’s creditors. Not all of the company’s creditors approved of the reorganization plan, although the retailer released a statement saying most “voted in favor of the plan.” If Kmart does not emerge from Chapter 11 bankruptcy protection by May, it could lose some of the $300 million in bailout capital promised by ESL Investments and Third Avenue Trust. Executives at ESL Investments have threatened to pull their share of the funding if Kmart cannot meet the May deadline.
