Kmart Corporation (NYSE: KM) announced that, at a hearing today in Chicago, the United States Bankruptcy Court for the Northern District of Illinois approved Kmart's request to extend the period during which the Company has the exclusive right to file a plan of reorganization. The Court also granted a number of other orders sought by Kmart, including the assumption of an additional key brand license agreement, the sale of a corporate aircraft, and the retention of a mediator to assist in the disposition of personal injury claims against Kmart.
The period in which Kmart has the exclusive right to file a plan of reorganization has been extended through February 28, 2003. It had been scheduled to expire on August 7, 2002. None of Kmart's statutory committees objected to the proposed extension.
James B. Adamson, Kmart Chairman and Chief Executive Officer, said, "We are very pleased to have received the support of the Court and our creditor groups to extend our exclusivity rights. With this extension, we can focus on our top priorities of driving sales and reducing costs in the second half of 2002. We believe the information we gain from this year's back-to-school and holiday seasons will be invaluable as we develop a long-term strategic business plan and plan of reorganization for Kmart."
The Court today also approved a motion allowing Kmart to assume the license agreement for its proprietary Route 66® apparel line. The Court previously approved the assumption of license agreements for Kmart's Martha Stewart Everyday®, Jaclyn Smith®, Kathy Ireland®, Disney®, JOE BOXER®, Curtis Mathes® and Sesame Street® brands.
Other motions approved by the Court include the sale of a corporate jet to Shamrock Equipment Company, Inc.; the retention of Erwin I. Katz, a retired bankruptcy judge, as a mediator in connection with the Company's procedures for resolving certain judgment claims; and the retention of legal and financial advisors for the recently appointed Equity Committee.
Kmart Corporation is a $36 billion company that serves America with more than 1,800 Kmart and Kmart SuperCenter retail outlets and through its e-commerce shopping site, http://www.kmart.com/ .
Cautionary Statement Regarding Forward-Looking Information
Statements made by Kmart that address activities, events or developments that we expect or anticipate may occur in the future are forward-looking statements. Such forward-looking statements are and will be, as the case may be, subject to many risks and uncertainties, including, but not limited to, Kmart's having filed for bankruptcy and factors relating to Kmart's operations and the business environment in which Kmart operates, which may cause the actual results of Kmart to be materially different from any future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those set forth in Kmart's Annual Report on Form 10-K for the fiscal year ended January 30, 2002 or in other filings made, from time to time, by Kmart with the Securities and Exchange Commission. The forward- looking statements speak only as of the date when made and Kmart does not undertake to update such statements.
Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of our various pre-petition liabilities, common stock and/or other equity securities. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of Kmart common stock receiving no value for their interests. Because of such possibilities, the value of the common stock is highly speculative. Accordingly, we urge that appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.
SOURCE: Kmart Corporation
CONTACT: Kmart Media Relations, +1-248-463-1021
Web site: http://www.kmart.com/