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Article: Some Kmart Creditors Cash Out.
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- June 1, 2002
CopyrightCOPYRIGHT 2002 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Lorene Yue, Detroit Free Press Knight Ridder/Tribune Business News
Jun. 1--Kmart Corp. creditors who are tired of waiting for the retailer to pay outstanding bills are turning to debt buyers for quicker cash.
When the Troy retailer filed for Chapter 11 bankruptcy reorganization on Jan. 22, it owed thousands of companies and organizations at least tens of millions of dollars.
Filing for bankruptcy protection allows Kmart to pay those bills after it files a reorganization plan. Federal bankruptcy court gave the retailer permission to file the plan by mid-August, but company officials are seeking an extension until the end of February.