Filene's, Syms exclusivity, examiner hearings delayed to May 2

By Jim Witters

Wilmington, Del., March 30 - Hearings on motions by Filene's Basement, LLC and Syms Corp. to appoint an examiner in the case and extend the company's exclusive period for filing a Chapter 11 plan were adjourned on Friday until May 2.

Judge Kevin J. Carey said he wants a status report on April 22 on negotiations for a Chapter 11 plan.

A hearing on the two motions by the debtors and on a motion from the equity committee to terminate exclusivity was scheduled for April 10. The debtors and the official committee of unsecured creditors sought to move the hearing to May 10.

The delay is needed to allow the debtors, the creditors committee and the equity committee to continue discussions leading to brokered agreements or a global settlement, debtors attorney Mark S. Chehi said during a conference call in the U.S. Bankruptcy Court for the District of Delaware.

The debtors, the creditors committee and the equity committee have Chapter 11 plans to present, and all three could be brought forward if the debtors' exclusive period is terminated.

Equity committee attorney Thomas B. Walper said the April 10 hearing date put needed pressure on the parties to reach agreement more quickly.

"The delay will allow people to do other things for a couple of weeks before they reengage," Walper said.

Walper said that, while the equity committee has been involved in discussions and exchanges of factual information, the debtors have not been negotiating with the equity holders on a Chapter 11 plan.

Chehi said moving the hearings to May also allows the parties to focus on plan negotiations, rather than starting intensive discovery processes in preparation for an April 10 court date.

In addition, since many issues remain unresolved, the hour of court time set aside on April 10 is insufficient, Chehi said.

Carey said he was "inclined" to believe Walper's contention that a closer hearing date would apply pressure to settle. But, since the time set aside is insufficient, the hearing had to be delayed.

Syms, a Secaucus, N.J.-based off-price clothing retailer, filed for bankruptcy on Nov. 2 in the U.S. Bankruptcy Court for the District of Delaware, along with wholly owned subsidiary Filene's Basement. The joint Chapter 11 case number is 11-13511.

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