Opinion
No. 399-02649
February 4, 2003
Paul G. Jennings, Beth A. Dunning, BASS, BERRY SIMS PLC, Nashville, TN, and John Wm. Butler, Jr., George N. Panagakis, SKADDEN, ARPS, SLATE, MEAGHER FLOM (ILLINOIS), Chicago, IL, Attorneys for Debtors and Debtors-in-Possession
ORDER PURSUANT TO 11 U.S.C. § 1121(d) EXTENDING THE DEBTORS EXCLUSIVE PERIOD WITHIN WHICH TO FILE A PLAN OF REORGANIZATION
Upon the motion, dated February 4, 2003 (the "Motion"), of Service Merchandise Company, Inc. ("Service Merchandise") and 31 of its affiliates (the "Affiliate Debtors"), debtors and debtors-in-possession in the above-captioned cases (Service Merchandise and the Affiliate Debtors, collectively, the "Debtors"), and the statements of counsel in open Court on February 4, 2003, pursuant to 11 U.S.C. § 1121(d), for entry of an order extending the Debtors' exclusive period within which to file a plan, as more fully described in the Motion; and it appearing that the relief requested is in the best interest of the Debtors, their estates, creditors and other parties in interest and is a proper exercise of the Debtors' business judgment; and it appearing that good and sufficient notice of the Motion having been given and that no other or further: notice is necessary; and after due deliberation thereon; and good and sufficient cause appearing therefor,
Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Motion.
IT IS HEREBY FOUND:
1. No party other than the Debtors is in a position at this time to propose a responsible and meaningful plan in these cases.
2. Cause exists to extend the Debtors' Exclusive Periods as set forth in the Motion.
3. Any findings of fact contained in the foregoing paragraphs that may be construed as conclusions of law, shall be treated as conclusions of law as if set forth below.
IT IS HEREBY ORDERED, ADJUDGED and DECREED:
1. The Motion is granted in its entirety.
2. The Debtors' business judgment to seek to extend the Exclusive Periods is reasonable and appropriate under the circumstances and is hereby approved.
3. The Filing Exclusive Period is extended to and including March 5, 2003.
4. Entry of this Order is without prejudice to (i) the Debtors' right to seek from this Court such additional and further extensions of the Exclusive Periods as may be necessary or appropriate, and/or (ii) the right of any party in interest's to seek to reduce the Exclusive Periods for cause pursuant to 11 U.S.C. § 1121(d). Notwithstanding any objection or response which may be filed with respect hereto, the Exclusive Periods shall be extended to no earlier than the date such objection or response is resolved.
5. In the event that the Debtors file a plan by March 5, 2003 and thereafter determine to withdraw such plan, the Filing Exclusive Period shall be deemed extended for thirty (30) days after the date of such withdrawal.
6. Any conclusions of law contained in the foregoing paragraphs that may be construed as findings of fact, shall be treated as findings of fact as if set forth above.