Document text
Court pushes Kern issues into February By DAVID PRESZLER A decision on Kern Family Services' sale of its Grants Pass funeral businesses was delayed Wednesday morning, as was the troubled company's reorganization plan. The U.S. Bankruptcy Court in Eugene pushed hearings on both matters back to Feb. 9. Kern's attorney, Wilson Muhlheim, requested the delay so his firm can present a more complete disclosure statement and reorganization plan and resolve objections to the Grants Pass sale, according to the court's clerk. A key facet of the bankruptcy case is the repayment of $4 to $5 million missing from a trust fund. More than 3,600 customers paid into the fund for future funeral and burial services. Kern has vowed to repay the money from the sale of its businesses in Medford and Grants Pass. Doug Schultz, the attorney representing the customers, filed an objection to the Grants Pass sale, as did the state. Schultz said the sale agreement didn't specify how the money generated would be used to repay the customers. Service Corporation International (SCI) has signed a letter of intent to purchase Kern's Grants Pass companies: Hull & Hull Funeral Home, Hawthorne Memorial Gardens and Southern Oregon Cremation Services. Kern also runs the Perl group of funeral and burial services in Medford. A letter of intent to sell those businesses to Stewart Enterprises has been signed, but the court must also approve that sale and no hearing date has been set. As expected, Kern also withdrew its disclosure statement and reorganization plan. Muhlheim said the company needed to do more work on the documents, which it plans to refile within 10 days. Prepaid customers have continued to be serviced while the bankruptcy issues are resolved and the company has said none of them will lose any money. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1998, Medford, Oregon USA