Kmart Corporation (NYSE: KM) today announced that it has filed a motion in the United States Bankruptcy Court for the Northern District of Illinois seeking approval to retain Ernst & Young Corporate Finance LLC as the Company's financial advisor. The motion is scheduled to be heard by Chief Judge Susan Pierson Sonderby on March 6, 2002.
Upon court approval, Ernst & Young will provide Kmart with a variety of financial advisory services related to its pending reorganization cases. These services could include assistance in the preparation of financial disclosures required by the court such as monthly operating reports; assistance with the identification of executory contracts and leases and performance of cost/benefit evaluations with respect to the affirmation or rejection of each; and assistance regarding the evaluation of the present level of operations and identification of areas of potential cost savings. These services had previously been provided by PricewaterhouseCoopers LLP, which will continue to serve as Kmart's independent auditors and tax advisors.
James B. Adamson, Chairman of Kmart's Board of Directors, said, "The decision to retain Ernst & Young Corporate Finance as the Company's financial advisor was unanimously approved by the Kmart Board. The Board believes that in today's corporate environment it was prudent to make this change. We appreciate the dedication and hard work performed by the Business Recovery Services Group of PricewaterhouseCoopers LLP. They have been instrumental in guiding us through to this point in our reorganization. This change certainly does not reflect upon the quality of the services and advice they have provided to us."
SOURCE: Kmart Corporation
Contact: Kmart Media Relations, +1-248-463-1021