NEW YORK--As three potential purchasers continue to eye its operations, Crystal Brands Inc. has filed papers in bankruptcy court seeking to extend by 60 days the time it has to gain acceptances to a plan of reorganization.
The company said the proposed extension to March 31 would give it ample time to carefully examine any detailed offers that might come in from the three suitors.
Three companies--Donaldson, Lufkin, Jenrette's Merchant Banking Group, with a $125 million bid; Phillips-Van Heusen Corp., with a bid of $120 million, and Salant Corp., which has yet to bid--are performing due diligence toward a possible purchase.
In addition, Crystal Brands, the maker of Gant, Salty Dog and Izod apparel, has filed a disclosure statement detailing a stand-alone reorganization plan. A hearing to approve the disclosure statement has been put off pending the outcome of the due diligence.
"Given the present circumstances, the debtors are unable to predict with any degree of certainty whether a sale of assets ultimately will be agreed to, negotiated and approved by the court, or whether the debtors will move forward with an internal reorganization as proposed under the plan," Crystal Brands said in papers filed in bankruptcy court, here.
A proposed order for the 60-day extension will be presented for Bankruptcy Judge Prudence Abram's approval on Wednesday. Charles Campbell, Crystal Brands' chief executive officer, said last week that his firm will know by "mid-January" whether it wants to pursue any of the offers.
Crystal Brands, which sold off its costume jewelry operations in December, now is primarily a men's wear producer but retains some women's apparel operations.
--Fairchild News Service

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