Syms, Lehman, FirstFed, Global Aviation: Bankruptcy ‎

The creditors’ representative said the parties haven’t “even exchanged drafts of a revised plan and disclosure statement since the term sheet has not yet been finalized.”

There will be a conference today with the bankruptcy judge in Delaware, who will decide whether to push back the hearing to July 13 from July 9.

In a filing with the bankruptcy court on July 3, the creditors’ committee said there as yet is only a “handshake deal on the material terms” of a consensual Chapter 11 plan. Although there has been “significant progress,” there are “a few open issues” on the documentation necessary to implement the settlement, the committee said.

The official equity committee, together with Syms and subsidiary Filene’s Basement LLC, are opposing any delay in the July 9 hearing, where the bankruptcy court theoretically would consider approval of disclosure material explaining a prior version of the plan that is being superseded by the settlement. The July 9 hearing is also designed to put procedures into motion for approving the settlement and an accompanying rights offering to raise about $25 million.

Flight School

In opposing delay, the shareholders’ committee said that an adjournment “will remove the pressure of a looming deadline when one is needed most.”

Aviation Colleges

In general terms, the settlement provides for paying unsecured claims against Syms in full within “agreed upon time frames.” Trade and supplier claims against Filene’s will also be paid in full. Claims arising from terminated leases not guaranteed by Syms will receive 75 percent payment, also within specified time frames. For details on the settlement, click here for the July 3 Bloomberg bankruptcy report.