*ETOYS<ETYS.O> CREDITORS EXTEND FOREBEARANCE DEADLINE TO FEB 15 -
ATTORNEY
LOS ANGELES, Jan 31 (Reuters) - A group of creditors owed about $100 million by eToys Inc. <ETYS.O> extended a deadline to refrain from pressing claims against the troubled Internet toy seller while it seeks a buyer or investor to prop up the company, an attorney for the creditors said on Wednesday.
The creditors group, which includes such names as toy makers Mattel Inc. <MAT.N>, Hasbro Inc. <HAS.N> and Lego Systems, had set a previous deadline of Jan. 31, but extended that until Feb. 15, said Michael Fox, a New York attorney who represents the group.
According to public documents, eToys owes creditors about $200 million, nearly half of which is owed to members of the informal creditors group.
EToys previously reported fourth-quarter sales that fell well short of its earlier forecasts, and said it has only enough cash to stay in business through the end of March.
"The idea is (the creditors) are still trying to work with the company to find the right alternative for them," Fox said. "We are positive and we remain optimistic that we'll come up with something that works for everybody."
Options reportedly being discussed by eToys include a sale of the company or a strategic investment by an outside party. One or more of the creditors may also be willing to take an equity stake in eToys, according to sources familiar with the situation. |
