NEW YORK -- Officials from The Leslie Fay Cos. and the striking ILGWU met Monday in a six-hour session with Irwin Gerard, a commissioner with the Federal Mediator and Conciliation Services, with no significant progress reported.

A Leslie Fay spokesman said the talks were exploratory. Both sides have agreed to meet with Gerard today at 1:30 p.m., the spokesman said. Officials from the union could not be reached.

The meeting was the first since talks broke down May 31 and a strike against the company's production and distribution facilities began June 1.

Meanwhile, in its Chapter 11 proceedings, the company and its two main creditors' groups -- the unsecured creditors' committee and its equity security holders' committee -- have reached an agreement to extend the apparel maker's exclusivity period to Oct. 3, a company spokesman said Monday.

With no major group in opposition, Bankruptcy Judge Tina L. Brozman is expected to approve the motion today.

Leslie Fay's exclusivity period was set to expire on June 16. During exclusivity, only the debtor has the right to propose a plan of reorganization.

In court papers filed last month, Leslie Fay had originally requested its exclusivity period be extended to Dec. 15.

Meanwhile, a hearing to approve Leslie Fay's executive incentive compensation plan, scheduled for Tuesday, has been adjourned until June 29.

As reported, that plan provides incentives for the company's senior officials that could double their salaries.

To continue reading this article...

To Read the Full Article

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus