USA Discounters wins fourth exclusivity extension amid case progress

By Caroline Salls

Pittsburgh, Oct. 5 – USA Discounters, Ltd. obtained a fourth extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company’s exclusive filing period was extended through Nov. 21 from Sept. 20 and the solicitation period through Jan. 18 from Nov. 18.

Since its last request for an extension of the exclusive periods, USA Discounters said the case parties have continued settlement negotiations and have exchanged further draft plan term sheets.

In addition, the company said it is in the process of negotiating and documenting a potential plan support agreement with the official committee of unsecured creditors and secured lenders, which is intended to formalize the settlement being negotiated between the committee and the secured lenders and to facilitate the prosecution of a Chapter 11 plan.

According to the motion, USA Discounters has also provided a revised draft Chapter 11 plan to the committee and the lenders and expects to receive comments on that draft soon, which will allow the parties to make more progress toward the filing of the plan.

“Based on the foregoing progress made in these cases, the debtors respectfully submit that cause exists to further extend the debtors’ exclusive periods,” the motion said.

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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