Crescent Jewelers asks court to protect it from 'harassing' discovery requests from potential bidder

By Caroline Salls

Pittsburgh, March 24 - Crescent Jewelers is seeking a protective order to limit "the barrage of discovery sought by Harbinger Capital Partners Master Fund I, a potential bidder for Crescent's assets," according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of California.

Crescent said Harbinger's discovery requests are an attempt to harass the official committee of unsecured creditors and the company and to distract them from implementing their internal plan of reorganization.

"Even if it were not for harassment, to the extent the discovery requests information regarding other bidders and Crescent's efforts to form an alternative plan of reorganization, the requests are clearly beyond the scope of discoverable material and seek to give Harbinger an unfair advantage in the bidding process," Crescent said in the motion.

Crescent said it and the committee intend to start legal proceedings against Harbinger for the damages it has inflicted on the company's estate.

The company asked that it be granted a continuation of the hearing on its exclusivity extension if the court does not grant the protective order.

Crescent, an Oakland, Calif.-based retailer, filed for bankruptcy on Aug. 11, 2004. Its Chapter 11 case number is 04-44416.

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