In re: KMART CORPORATION, et al., Debtors.

Case No. 02-B02474United States Bankruptcy Court, N.D. Illinois, Eastern Division
February 13, 2002

ORDER PURSUANT TO 11 U.S.C. § 105(a) AND 363 AUTHORIZING THE DEBTORS TO HONOR REIMBURSEMENT OBLIGATIONS TO ISSUERS OF PRE-PETITION LETTERS OF CREDIT ISSUED FOR THE BENEFIT OF THE DEBTORS’ FOREIGN VENDORS
SUSAN PIERSON SONDERBY, United States Bankruptcy Judge

Upon the motion dated February 1, 2002 (the “Motion”)[1] , wherein Kmart Corporation (“Kmart”) and certain of its domestic subsidiaries and affiliates, debtors in debtors-in-possession in the above-captioned cases (collectively, the “Debtors”), moved this court for entry of an order, pursuant to 11 U.S.C. § 105(a) and 363, authorizing the Debtors to honor reimbursement obligations to issuers of pre-petition letters of credit issued for the benefit of the Debtors’ foreign vendors; it appearing to the Court that (i) it has jurisdiction over the matters raised in the Motion pursuant to 28 U.S.C. § 157 and 1334; (ii) this is a core proceeding pursuant to 28 U.S.C. § 157(b)(2); (iii) the relief requested in the Motion is in the best interests of the Debtors, their estates and their creditors; (iv) proper and adequate notice of the Motion and the hearing thereon has been given and that no other or further notice is necessary; and (v) upon the record herein, and after due deliberation thereon, that the relief should be granted as set forth below,

IT HEREBY ORDERED, ADJUDGED, AND DECREED THAT

2. The Debtors are authorized to honor the reimbursement obligations of Issuers of Letter of Credit.

[1] Capitalized terms not defined herein have the meanings ascribed thereto in the Motion.