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ADVANCED MARKETING: Wants More Time to Decide on Remaining Lease
Advanced Marketing Services Inc., Publishers Group Incorporated, and Publishers Group West Incorporated ask the U.S. Bankruptcy Court for the District of Delaware to extend the time by which they may assume or reject their sole remaining unexpired lease of a non-residential real property, located in Indianapolis, Indiana, with The Prudential Company of America as landlord.
The Debtors seek extension of the Lease Decision Period through and including Oct. 31, 2007, without prejudice to their right to seek further extensions.
Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Court previously approved the Debtors' assumption and assignment to Perseus Books LLC of the leases for space in Berkeley and New York. He also notes that the Debtors have expressed intention to consummate that assignment before September 30.
Under Section 365(d)(4)(B)(ii) of the Bankruptcy Code, the Court may grant a subsequent extension "only upon prior written consent of the lessor in each instance."
In the Debtors' cases, Mr. Collins points out, they have obtained prior written consent of the lessor of the Indianapolis Lease to the requested October 31 extension.
The Court will convene a hearing on October 26 at 11:00 a.m., to consider the Debtors' request. Pursuant to Del.Bankr.LR 9006-2, the Debtors' Lease Decision Period with respect to the Indianapolis Lease is automatically extended until the conclusion of that hearing.
About Advanced Marketing
Based in San Diego, Calif., Advanced Marketing Services, Inc. -- http://www.advmkt.com/ -- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs around 1,200 people Worldwide.
The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. Lowenstein Sandler PC represents the Official Committee of Unsecured Creditors. In schedules filed with the Court, Advanced Marketing disclosed total assets of US$213,384,791 and total debts of US$216,608,357. Publishers Group West disclosed total assets of US$39,699,451 and total debts of US$83,272,493. Publishers Group Inc. disclosed zero assets but US$41,514,348 in liabilities.
On Aug. 24, 2007, the Debtors' exclusive period to file a chapter 11 plan expired. On the same date, the Debtors and Creditors Committee filed a Plan & Disclosure Statement. On September 26, the Court approved the adequacy of the Disclosure Statement explaining the Second Amended Plan. The hearing to consider confirmation of the Plan is set on Nov. 15, 2007. (Advanced Marketing Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/ or 215/945-7000).
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