MATTER OF FEDERATED DEPT. STORES, INC.

Bankruptcy No. 1-90-00130.

132 B.R. 572 (1991)

In the Matter of FEDERATED DEPARTMENT STORES, INC. and Allied Stores Corporation, et al., Debtors.

United States Bankruptcy Court, S.D. Ohio, W.D.

October 21, 1991.


Attorney(s) appearing for the Case

Dennis J. Broderick, Gen. Counsel, Frank G. Julian, Director Tax Counsel, John R. Sims, Deputy Gen. Counsel, Cincinnati, Ohio, Federated/Allied, Kenneth L. Betts, Mark E. Betzen, Dallas, Tex., Richard M. Cieri, Scott J. Davido, Cleveland, Ohio, Kathleen Gagich, Columbus, Ohio, Lyle G. Ganske, Cleveland, Ohio, Henry L. Gompf, Dallas, Tex., Robert Graves, Chicago, Ill., Paul E. Harner, Columbus, Ohio, David G. Heiman, Carl M. Jenks, (Tax), Katherine B. Jenks (Litigation), Cleveland, Ohio, David S. Kurtz, Cory Lipoff, Chicago, Ill., Craig N. Meurlin, Cleveland, Ohio, Glen Nager, Washington, D.C., Robert A. Profusek, Dallas, Tex., Michael D. Shumate, New York City, William H. Steinbrink, John L. Sterling, Cleveland, Ohio, Robert H. Stone, Dallas, Tex., Patrick F. Sullivan, Cleveland, Ohio, John W. Zeiger, Columbus, Ohio, Debra K. Mealy, Chicago, Ill., Jones, Day, Reavis & Pogue, Edmund J. Adams, Kim Martin-Lewis, Mike Haverkamp, Cincinnati, Ohio, Frost & Jacobs, William M. Rowe, KPMG Peat Marwick, Cincinnati, Ohio, Craig Freeman, Price Waterhouse, Bethesda, Md., Carter Evans, James Harris, Peter Morgan, Shearson Lehman & Hutton, New York City, Stephen F. Cooper, Steven G. Panagos, Zolfo Cooper, New York City, for Federated/Allied.

Lewis S. Rosenbloom, Jill Kosmin, Karen M. Gebbia, Winston & Strawn, Chicago, Ill., Stephen D. Strauss, Porter, Wright, Morris & Arthur, Cincinnati, Ohio, James R. Giuliano, III, Kenneth Leventhal & Co., New York City, for Federated Creditors' Committee.

Lawrence C. Gottlieb, Jay Randall Indyke, Siegel, Sommers & Schwartz, New York City, William T. Hayden, Cohen, Todd, Kite & Stanford, Cincinnati, Ohio, Jack A. Weisbaum, B.D.O. Seidman, New York City, for Allied Creditors' Committee.

Lawrence M. Handlesman, Robert A. Raskin, Stroock & Stroock & Lavan, Barry M. Monheit, Arthur Anderson & Co., Mark Gallogly, The Blackstone Group, L.P., Harvey R. Miller, Edward A. Sutherland, Weil, Gotshal & Manges, New York City, for Federated Bondholders' Committee.

Ellen R. Werther, Jonathan M. Jacobson, Scott E. Ratner, Coudert Brothers, David J. Boland, Coopers & Lybrand, David J. Supino, Sandy Lamb, Lazard Freres & Co., New York City, for Allied Bondholders' Committee.

Peter A. Ivanick, Angela J. Summers, New York City, Ralph R. Mabey, Salt Lake City, Utah, LeBoeuf, Lamb, Leiby & MacRae, Nicholas Sakellariadis, Smith Barney, Harris Upham & Co., New York City, for Premerger Bondholders' Committee.

Harvey R. Miller, Edward A. Sutherland, Weil, Gotshal & Manges, David L. Bleich, Marc. M. Rossell, Henry Weisburg, Susan P. Johnston, Shearman & Sterling, New York City, for Citibank, N.A.

Richard S. Toder, Zalkin, Rodin & Goodman, New York City, for Chemical Bank.

Peter V. Pantaleo, O'Melveny & Myers, New York City, for GE Capital Corp.

William B. Gannett, Robert Usadi, Cahill Gordon & Reindel, Thomas D. Levy, Martin E. Segal Co., Washington, D.C., Eugene Keilin, Keilin & Bloom, New York City, for Official Retirees' Committee.

Philip Gleacher, Gleacher & Co., Martin Nachimson, Ernst & Young, New York City, for Secured Creditors' Committee.

Bruce Bennett, Michael Morris, Frank Merola, Isaac M. Pachulski, Stutman, Treister & Glatt, Richard D. Fybel, Rena Ahern, Carla Hamre, Morrison & Foerster, Los Angeles, Cal., for Federated Stores, Inc.

Neil J. Weill, Atty., in charge, Cincinnati, Ohio, Charles M. Caldwell, Asst. U.S. Trustee, Columbus, Ohio, Conrad J. Morgenstern, U.S. Trustee, Cleveland, Ohio, U.S. Trustees' Office.


DECISION AND ORDER ON DEBTOR'S MOTION FOR DECLARATORY JUDGMENT

(Retiree Benefits)

J. VINCENT AUG, Jr., Bankruptcy Judge.

Debtors move for a declaratory judgment that their Plan of Reorganization is eligible for confirmation without a provision for the continuation of retiree benefits for pre-petition retirees if the Debtors have neither reached an agreement with the Official Retiree Committee ("Committee") under § 1114(e)(1)(B) of the...

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