December 10, 2019 – The Court hearing the Specialty Retail Shops Holding Corp cases has extended the periods during which the Debtors have an exclusive right to file a Chapter 11 Plan, and solicit acceptances thereof, through and including July 16, 2020 and September 16, 2020, respectively [Docket No. 2102]. Absent the requested relief, the Plan filing and solicitation periods expire on December 12, 2019 and March 17, 2019, respectively.
On September 12th, McKesson Corporation ("McKesson"’) appealed an August 30th Court order [Docket Nos. 1913 and 1876, respectively] which denied McKesson's request to have approximately $36.2mn of its $70.6mn in claims treated as an administrative claim. That appeal was made to the United States District Court for the District of Nebraska.
As previously reported in respect of the Debtors’ motion requesting the extensions [Docket No. 2068], “The Debtors have completed substantially all their obligations under chapter 11 and are well-positioned to ultimately emerge from chapter 11. But, as this Court is aware, the Debtors’ chapter 11 plan (the ‘Plan’) is currently being appealed by McKesson Corporation (‘McKesson’). In the unlikely event that McKesson’s appellate efforts succeed and out of an abundance of caution, the Debtors seek to preserve their ability to chart an alternative path for an efficient and expeditious exit from chapter 11.
Accordingly, given that the Debtors’ exclusive periods to file a plan and solicit acceptances expire on December 12, 2019, and February 10, 2020 respectively, and the typical length of the appellate process, it is imperative that the Debtors exclusive periods to file and solicit chapter 11 plans are extended to their statutory maximums.
Such relief is especially appropriate here where the Debtors have demonstrated their ability to build consensus around the Plan and have achieved numerous other milestones throughout these chapter 11 cases…The Debtors’ efforts so far demonstrate that their continued efforts will ensure that the distributable value within their estates are maximized in an orderly manner through a chapter 11 plan process.”
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The post Specialty Retail Shops Holding Corp. (Shopko Stores) – Court Grants “Statutory Maximum” 210-Day Extension of Exclusive Plan Filing Period as McKesson Appeal of Claim Treatment is Heard appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.