Department store chain Belk Inc. won bankruptcy-court approval to cut $450 million in debt, emerging from a prepackaged chapter 11 case less than 24 hours after it was filed, WSJ Pro Bankruptcy reported. After filing for chapter 11 protection on Tuesday, Belk won approval for its restructuring plan yesterday from Judge Marvin Isgur in the U.S. Bankruptcy Court in Houston. Belk’s sprint through chapter 11 was one of just a handful of cases that were completed in under 24 hours. Kirkland & Ellis LLP, the law firm representing Belk in the bankruptcy case, said the pre-packaged restructuring was completed in less than 21 hours, faster than other recent Kirkland cases that were quickly turned around, including catalog retailer Fullbeauty Brands Inc. and Sungard Availability Services LP, an information-technology services provider. Superfast bankruptcies like Belk’s are rare. Only a handful of companies have been able to go in and out of bankruptcy in a 24- or 48-hour time frame, including Fullbeauty, which set the previous record in 2019 for the least time between the filing of a chapter 11 petition and confirmation of an exit plan. Charlotte, N.C.-based Belk, however, is using bankruptcy solely to restructure its debt while paying vendors in full and assuming the leases at its 291 stores, all of which are staying open, according to court papers. Judge Isgur expressed concern at Wednesday’s court hearing about whether all creditors were properly notified in advance of the planned bankruptcy and had enough time to raise objections. Justice Department bankruptcy monitors objected to Belk’s sprint through bankruptcy, saying the company was racing through the process too quickly without giving creditors and others who might have an interest in the chapter 11 case enough time to respond or object.
