Rhodes gets extension to exclusive period to solicit votes on reorganization plan

By Caroline Salls

Pittsburgh, July 28 - Rhodes, Inc. obtained an extension to its exclusive period to solicit acceptances on its plan of reorganization, according to a Thursday filing with the U.S. Bankruptcy Court for the Northern District of Georgia.

The company's exclusive period to solicit votes was extended to Oct. 17 from Aug. 16.

In its motion, Rhodes said the extension is needed because of the size and complexity of the case as it has thousands of creditors and more than $100 million in liabilities.

The company said it has worked closely with its financial advisers in preparing a business plan that will support successful implementation of its plan of reorganization, which was filed on June 21.

"In that regard, [Rhodes and its] advisers have spent considerable time compiling and reviewing financial information, cost-savings initiatives, business plans and financial projections," according to the filing.

As a result, Rhodes said it has not had an opportunity to assess the long-term implications of its findings.

Rhodes, an Atlanta-based furniture retailer, filed for bankruptcy on Nov. 4, 2004. Its Chapter 11 case number is 04-78434.

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