Gymboree Group – Seeks Extension of Exclusive Plan Filing Period Until July 16, 2019

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April 17, 2019 – The Debtors filed a motion to extend the periods during which they have an exclusive right to file a Chapter 11 Plan, and solicit acceptances thereof, through and including July 16, 2019 and September 14, 2019, respectively [Docket No. 658]. Absent the requested relief, the Plan filing and solicitation dates are scheduled to expire on May 17, 2019 and July 16, 2019, respectively.

The extension motion explains, “The Debtors have made significant progress towards concluding these cases in the value-maximizing manner and securing consensus among their key constituents, but still require additional time to resolve the outstanding issues in these cases, including achieving a resolution of the WARN-related litigation pending in both the Bankruptcy Court and the United States District Court for the Northern District of California and determining whether they will be able to propose a confirmable, feasible plan. Nevertheless, the Debtors have (i) finalized sales of substantially all of their assets, (ii) identified sources for funding payment of the outstanding WARN Act claims and of their “stub rent,” and (iii) entered into agreements with their DIP lenders and the Committee to facilitate the formulation of a potential plan of reorganization….With the sales completed, the size of the estates available for distribution to the Debtors’ creditors has been fixed. What remains is the formulation of a plan that would allocate the proceeds of the sale in the most equitable manner in compliance with the priority provisions of the Bankruptcy Code. The Debtors, in cooperation with the Committee and working with the DIP Agent, are the parties best positioned to achieve this result and just need sufficient time to conclude negotiations with the various constituents involved.”

The Court scheduled a May 1, 2019 hearing to consider the motion, with objections due by April 26, 2019. [Docket No. 659]

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