Kmart Corporation announced that the U.S. Bankruptcy Court for the Northern District of Illinois entered and order Tuesday evening confirming the Company’s First Amended Joint Plan of Reorganization, as modified. Following a confirmation hearing that concluded earlier in Chicago, Judge Susan Pierson Sonderby ruled that Kmart had met all of the necessary statutory requirements to confirm the plan. With this action, Kmart is set to complete its “fast-track” reorganization and emerge from Chapter 11 protection on May 5, 2003. The Company addressed and resolved most of the 188 objections filed by stakeholders and the remaining objections were overruled by the bankruptcy court.
Kmart President and Chief Executive Officer Julian Day said, “We appreciate the strong support of our Plan of Reorganization by creditors, lenders and planned investors. They have been cooperative and constructive partners throughout Kmart’s reorganization process. We are also grateful to our vendors, customers and associates for their continued support during this challenging time, and we greatly appreciate the time and attention Judge Sonderby and the bankruptcy court, clerks and staff have given to this case.”
Day continued, “Although the end of our Chapter 11 reorganization is now fast approaching, the actions we have taken to restructure Kmart will continue at a rapid pace. Upon emergence, we will be able to put an even greater focus on strengthening the Company’s operational and financial performance. In particular, we will aggressively pursue opportunities to increase revenues, reduce costs and increase asset productivity. While there is much hard work ahead, our management team and associates are committed to facing the Company’s challenges with renewed enthusiasm and energy.”
Edward S. Lampert, Chairman and CEO of ESL Investments, Inc., a major investor in Kmart, added: “Kmart will emerge a stronger company, with a healthy balance sheet, a store-centric philosophy and the right leadership to revitalize this organization. Going forward, Kmart will have a corporate governance structure that will allow the Company to focus on the creation of long-term value. We welcome the opportunity to work with Julian Day, his management team, and all of the Kmart associates to build a brighter future for Kmart.”
