LESLIE FAY CH. 11 PLAN HEARING DELAYED AGAIN

NEW YORK — The hearing for confirmation of the Chapter 11 reorganization plan for The Leslie Fay Cos. has been postponed again, and is now scheduled for Feb. 28.
The hearing had been scheduled for Wednesday, but lead counsel for Leslie Fay, Alan B. Miller, at Weil, Gotschal & Manges, said the company is still looking to complete post-bankruptcy petition financings.
It was the third postponement since a confirmation was originally set up on Jan. 14. Leslie Fay entered Chapter 11 proceedings in April 1993.
As reported, the reorganization plan contemplates the breakup of Leslie Fay into two separate entities, Sassco and a reorganized Leslie Fay.
“The businesses are going well,” Miller said Wednesday in Manhattan bankruptcy court. “Leslie Fay is operating profitably so far in the first quarter, and Sassco is generating positive cash flow.”
Miller said the banks are close to sompleting financing, but he added, “It’s going to take a couple of days.”
Miller noted that First National Bank of Boston has agreed to provide post-bankruptcy financing to Sassco, while CIT Financial Corp. has agreed to finance reorganized Leslie Fay.

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