Kmart Corp. is fighting an attempt by its former CEO, Charles Conaway, to get the court overseeing the retailer’s bankruptcy to allow him to get access to money from the company’s insurance policies to pay his legal bills.
Simply put, Conaway wants access to the funds before Kmart’s reorganization plan is approved. Kmart says that would give Conaway an advantage over other present and past executives who may have a claim on the hundreds of millions of dollars in insurance coverage.
Conaway, of course, is the CEO would was in charge at Kmart during the years immediately preceding its bankruptcy filing. He and other executives are being investigated for possible mismanagement during that time, and Conaway has been named in a number of lawsuits.
Kmart hopes to be out of bankruptcy protection by the end of April.
Simply put, Conaway wants access to the funds before Kmart’s reorganization plan is approved. Kmart says that would give Conaway an advantage over other present and past executives who may have a claim on the hundreds of millions of dollars in insurance coverage.
Conaway, of course, is the CEO would was in charge at Kmart during the years immediately preceding its bankruptcy filing. He and other executives are being investigated for possible mismanagement during that time, and Conaway has been named in a number of lawsuits.
Kmart hopes to be out of bankruptcy protection by the end of April.
- KC's View:
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It may be hard-hearted, but we can’t help ourselves. No sympathy for Conaway in these quarters.
Let him wait.
