Judge OKs 1st-Day Motions In KB Toys Ch. 11

Law360, New York (December 12, 2008, 12:00 AM EST) -- A bankruptcy judge has granted KB Toys Inc.'s first-day Chapter 11 motions to draw on cash collateral, pay its employees and satisfy certain prepetition claims as the toy retailer prepares to close its doors for good.

Judge Kevin Carey of the U.S. Bankruptcy Court for the District of Delaware approved the KB Toys' requests Friday, a day after the company — the nation's largest mall-based specialty toy chain — filed for bankruptcy, citing a sudden drop in sales.

The judge also scheduled an expedited hearing on...
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