Loehmann's to File Reorganization Plan, Seeks Later Deadline
WILMINGTON, Del. -- Loehmann's Inc. said it will file a plan of reorganization under Chapter 11 of the Bankruptcy Code within a week, according to documents filed Thursday in the U.S. Bankruptcy Court in Wilmington, Del.</br></br>Still, the discount-apparel retailer, operating under Chapter 11 protection from creditors since May when it also was delisted from the Nasdaq Stock Market, is asking the court for a 90-day extension of its exclusive periods to file a reorganization plan and solicit votes in favor of it.</br></br>"Extending the debtor's exclusive periods will provide the debtor with sufficient time to fully review and consider all comments to its draft plan before filing the final document and will provide creditors with sufficient time to consider the proposed reorganization," Loehmann's said.</br></br>If its request is granted, Loehmann's, New York, would have the exclusive right to file a plan through June 12 and the sole right to solicit plan acceptances through Aug. 11. Loehmann's also is asking the court to extend the time within which it must assume or reject its leases of nonresidential property to June 12. A hearing on the exclusivity-extension request is scheduled for March 29. The deadline for objections is Friday.</br></br>Loehmann's said its official committee of unsecured creditors, with which it has worked extensively in finalizing the plan provisions, supports the exclusivity extension. Loehmann's filed for Chapter 11 protection May 18, listing assets of $189 million and liabilities of $184 million.