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Reuters reports that when Kmart delayed filing its quarterly financial reports this week because it needed more time to pull them together, it in fact may have violated the terms of its $2 billion bankruptcy financing.

However, experts seem to feel that nobody will cancel Kmart’s lines of credit, though banks may be able to use the violation to exert more pressure on the company when it files its reorganization plan.

Kmart now plans to files its reports with the US Securities and Exchange Commission (SEC) next Monday.
KC's View:
We’re still dying to see Kmart’s long-discussed reorganization plan. Sales are off, financial reports are late, Martha Stewart is under investigation, hundreds of stores have been closed and hundreds more are expected to be shuttered after the holidays.

Hard to imagine what the good news is going to be…