United Retail seeks 60-day exclusivity extension; plan expected soon

By Caroline Salls

Pittsburgh, May 16 - United Retail Group, Inc. is seeking an extension to its exclusive periods for filing and soliciting votes on a plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company wants to extend its exclusive filing period to July 30 from May 31 and the solicitation period to Sept. 28 from July 30.

According to the motion, United Retail sought input from its official committee of unsecured creditors and the purchaser of its assets on the best way to implement distributions to creditors on a timeline consistent with purchase agreement requirements and remaining wind-down activities.

The company said it expects to file a plan of liquidation and related disclosure statement within the next week.

Despite these plans, United Retail said it is requesting an exclusivity extension "out of an abundance of caution."

"Failure to extend the exclusive periods in these Chapter 11 cases, while the plan approval process is underway, would undermine the intent of section 1121 of the Bankruptcy Code," the company said in the motion.

A hearing is scheduled for May 31.

United Retail is a Rochelle Park, N.J., specialty retailer of large-size women's fashion apparel, footwear and accessories. The company filed for bankruptcy on Feb. 1. The Chapter 11 case number is 12-10405.

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