LESLIE FAY GETS COURT OK FOR DISCLOSURE
NEW YORK — The Leslie Fay Cos., in Chapter 11 since April 1993, won bankruptcy court approval on Thursday of its disclosure statement pending resolution of employment contracts for senior management.
As reported, the plan divides Leslie Fay into two units, New Sassco and a reorganized Leslie Fay. Creditors are being paid off with stock in both companies plus New Sassco notes.
Brian Rosen, of Weil, Gotshal & Manges, counsel for Leslie Fay, said the firm still needs to resolve certain issues related to employment of senior management. He said he expects a resolution Monday, and another hearing for plan approval is set for that day. If the issues are resolved by then, Rosen said, confirmation of the reorganization plan could be completed by Dec. 20.