London Fog's foreign vendors ask for consolidation of all bankruptcy estates

By Reshmi Basu

New York, Oct. 9 - Two of London Fog Group, Inc.'s foreign vendors and administrative creditors asked the court to consolidate all of the bankruptcy estates of the company, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Nevada.

Pakistan-based Arshad Corp. and China-based Jintex Asia said they are owed $1.28 million for the shipments of goods following the start of London Fog's Chapter 11 case, according to the motion.

But the official committee of unsecured creditors argued that their only claim was against Homestead Holdings, a unit of the company, and that Homestead did not have sufficient funds to pay the vendors.

However the creditors contend that the company always represented itself as a single business and economic entity while its assets were consolidated into the "London Fog Group."

"The London Fog Group's individual eggs were scrambled together, and it would be impossible to separate the "whites" from the "yolk" at this point," the vendors said in the motion.

A hearing is scheduled for Dec. 17.

London Fog Group, a Seattle-based apparel company, filed for bankruptcy on March 20, 2006 in the U.S. Bankruptcy Court for the District of Nevada. Its Chapter 11 case number is 06-50146.

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