Penn Traffic Gets More Time
SYRACUSE, N.Y. - The Penn Traffic Co. has been granted a third extension for submitting its reorganization plan to a federal judge, according to a story in Newsday.
U.S. Bankruptcy Judge Adlai Hardin Jr. on Tuesday approved the Penn Traffic Co.'s request to delay submission of its plan until the end of July. Creditors' responses will be delivered to the court by the end of September.
It's the third extension granted to Penn Traffic since the grocer filed for Chapter 11 bankruptcy protection last May 30. The current extension was to expire Thursday.
Penn Traffic's management and turnaround team told the court that, while it has made substantial headway in turning the company around, it needs more time to emerge from Chapter 11.
William Murphy, interim c.f.o., said the company's request for an extension is business as usual for a retailer attempting to reorganize.
Judge Hardin also approved the appointment of Robert Chapman as Penn Traffic's president and c.e.o.
The company has lost $155 million since filing for bankruptcy. In the meantime it has taken a number of steps aimed at its fiscal recovery. It closed or sold 67 Big Bear stores, eliminating 5,000 jobs. It also has sold off some other stores.
U.S. Bankruptcy Judge Adlai Hardin Jr. on Tuesday approved the Penn Traffic Co.'s request to delay submission of its plan until the end of July. Creditors' responses will be delivered to the court by the end of September.
It's the third extension granted to Penn Traffic since the grocer filed for Chapter 11 bankruptcy protection last May 30. The current extension was to expire Thursday.
Penn Traffic's management and turnaround team told the court that, while it has made substantial headway in turning the company around, it needs more time to emerge from Chapter 11.
William Murphy, interim c.f.o., said the company's request for an extension is business as usual for a retailer attempting to reorganize.
Judge Hardin also approved the appointment of Robert Chapman as Penn Traffic's president and c.e.o.
The company has lost $155 million since filing for bankruptcy. In the meantime it has taken a number of steps aimed at its fiscal recovery. It closed or sold 67 Big Bear stores, eliminating 5,000 jobs. It also has sold off some other stores.