Spiegel Group
on April 23 filed a motion with the U.S. bankruptcy court in New York for a four-month extension on its deadline to file a turnaround plan. The Downers Grove, IL-based mailer wants its May 10 deadline pushed back to Sept. 7; it also wants to move the deadline for soliciting votes from creditors from July 9 to Nov. 9. Spiegel wants the extra time sell off its $1.3 billion Eddie Bauer catalog/retail unit before negotiating with its creditors.
According to wire reports, the committee of Spiegel’s unsecured creditors favors the request. A hearing on the motion will be held May 4.
Bankruptcy court justice Robert Drain on April 21 issued an order for the $1.77 billion Spiegel to sell its Newport News catalog business to the Pangea investor group, provided a higher bid doesn’t come in during an upcoming auction. If there is at least one other qualified bid for Newport News of at least $26.35 million—equaling Pangea’s $25 million bid plus a $1.35 million breakup fee, expense reimbursement, and an initial $250,000 overbid–an auction will be held May 11.