FEGS requests third exclusivity extension, cites sale complexities

By Caroline Salls

Pittsburgh, Feb. 19 – Federation Employment and Guidance Service, Inc., which does business as FEGS, requested a third extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed Friday with the U.S. Bankruptcy Court for the Eastern District of New York.

FEGS wants to extend its exclusive plan-filing period to May 30 from March 31 and the solicitation period to July 29 from May 30.

The company said it has begun formulating a plan of liquidation in consultation with its official committee of unsecured creditors.

However, FEGS said “the brief extensions sought under this motion are reasonable in light of the size and complexity of this Chapter 11 case, the restriction placed on the sale of assets by not-for-profit entities and the various approvals necessary to consummate any sale of a not-for-profit entity’s assets.”

FEGS is a New York-based nonprofit health and human services organization that filed for bankruptcy on March 18, 2015. The Chapter 11 case number is 15-71074.

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