Kmart Corp. began the final stages of its bankruptcy, as it said that the majority of its creditors had voted in favor of its reorganization plan as a confirmation hearing on the plan commenced .
While some creditors reportedly rejected Kmart’s plan, the company said it doesn’t expect those votes to prevent it from emerging from bankruptcy by the end of the month. When that happens, it will be a slimmed down company, with just 1,500 stores, as compared to the 2,100 it had in January 2002.
Meanwhile, Kmart told the court that it had $4.07 billion in sales for the first three months of the year, more than the $4.01 billion it had projected for the period.
And the bankruptcy judge denied two motions that would have delayed the confirmation hearing.
While some creditors reportedly rejected Kmart’s plan, the company said it doesn’t expect those votes to prevent it from emerging from bankruptcy by the end of the month. When that happens, it will be a slimmed down company, with just 1,500 stores, as compared to the 2,100 it had in January 2002.
Meanwhile, Kmart told the court that it had $4.07 billion in sales for the first three months of the year, more than the $4.01 billion it had projected for the period.
And the bankruptcy judge denied two motions that would have delayed the confirmation hearing.
- KC's View:
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The Detroit Free Press had a terrific piece yesterday pointing out who the winners and losers were in the Kmart bankruptcy saga. Lawyers and consultants were the big winners, being paid more than $114 million since January 2002. In second place were Kmart executives such as chairman Jim Adamson and CEO Julian Day, who will get millions of dollars in bonus money when the company clears bankruptcy.
The big losers? Banks that had lent Kmart money and now will get 40 cents on the dollar repaid, bond holders who will be rewarded with new Kmart stock that is of questionable worth, shareholders who end up with nothing, and the more than 60,000 people who lost their jobs.
