NEW YORK — Jamesway Corp., reorganizing in Chapter 11, has asked the bankruptcy court to extend its exclusivity period to Oct. 31 from Sept. 15.
Bankruptcy Judge James L. Garrity has scheduled a hearing on the extension Sept. 13.
Despite the request for a six-week extension, which is backed by the unsecured creditors’ committee, the discounter still expects to have its reorganization plan confirmed in December, according to Tom Lauria of Weil, Gotshal & Manges, counsel to Jamesway.
The request for an extension comes weeks after a month-long battle between creditors and Jamesway over the size of the payout under the plan.
As reported, Jamesway and its creditors agreed in early August to pay unsecured creditors $55 million in cash upon consummation of the plan, expected by Jan. 28, and give them 100 percent of the 12 million shares in the reorganized Jamesway.
A hearing to approve the disclosure statement is set for Sept. 30. Lauria said ballots will be sent out in early October, and a hearing is likely in mid-December to confirm the plan.
— Fairchild News Service