USA Discounters asks court to grant exclusivity period extension

By Sheri Kasprzak

New York, March 18 – USA Discounters, Ltd. filed a motion asking the court to extend the exclusive periods for filing its Chapter 11 plan and soliciting votes for it, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

USA Discounters is seeking to extend the plan period to June 20 from March 21 and its solicitation period to Aug. 18 from May 20.

“As noted above, the debtors have drafted a Chapter 11 plan and disclosure statement and have spent significant time negotiating with the prepetition agent and the committee,” said the motion.

“However, the ongoing investigations by the attorneys general represent a major open contingency, the resolution of which is an effective precondition to prosecution of a plan in these cases. Accordingly, and for the additional reasons set forth herein, the debtors submit that the requested extensions of the exclusive periods are both appropriate and necessary in these cases so that the debtors can effectively broker a workable plan with creditor support.

USA Discounters, a Norfolk, Va.-based retailer, filed for bankruptcy on Aug. 25, 2015. Its Chapter 11 case number is 15-11755.

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