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CHICAGO -- A delay in Kmart Corp.'s bankruptcy hearing will likely delay the retailers planned emergence from bankruptcy until early May, a lawyer for the chain said on Tuesday.
The plan hit a snag after lawyers for the discounter's creditors spent hours grilling top executives about the restructuring plan. U.S. Bankruptcy Judge Susan Pierson Sonderby then postponed the rest of the hearing until next week. Kmart originally expected to emerge from bankruptcy on April 30.
An attorney for 90 landlords called Kmart's business plan "a hope, a speculation," and criticized why when the retailer emerges from bankruptcy that president and c.e.o. Julian Day would get a $1 million bonus, while landlords are owed millions and don't know when they will be repaid.
"We remain confident the company will, in fact, achieve confirmation of its plan and emerge," Kmart's lead bankruptcy attorney John William Butler Jr. said in a statement.