The Detroit Free Press reports on questions posed to Kmart CEO Julian Day during the hearings held this week to determine whether the company’s reorganization plan is acceptable to the bankruptcy court that has been overseeing its finances.
Synde Keywell, a lawyer for 90 landlords who rent to Kmart, asked Day about the plan, and pointed out that the day Kmart emerges from bankruptcy, “Day would receive a $1-million bonus, while its landlords are owed millions of dollars and don't know when they might be paid,” according to the paper.
Kmart continues to maintain that its reorganization plan is in the best interests of most of its creditors, and says that it has resolved about half of the 175 objections to its reorganization plan that have been filed.
The company has closed more than 600 stores and laid off some 67,000 employees since its January 2002 bankruptcy filing. It maintains that just by ending its supply agreement with Fleming and going to grocery self-distribution, it will save $450 million through 2007.
Synde Keywell, a lawyer for 90 landlords who rent to Kmart, asked Day about the plan, and pointed out that the day Kmart emerges from bankruptcy, “Day would receive a $1-million bonus, while its landlords are owed millions of dollars and don't know when they might be paid,” according to the paper.
Kmart continues to maintain that its reorganization plan is in the best interests of most of its creditors, and says that it has resolved about half of the 175 objections to its reorganization plan that have been filed.
The company has closed more than 600 stores and laid off some 67,000 employees since its January 2002 bankruptcy filing. It maintains that just by ending its supply agreement with Fleming and going to grocery self-distribution, it will save $450 million through 2007.
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