Fund Extends Its Offer for Carter Hawley : Finance: Zell/Chilmark wants to give the retail chain’s creditors more time to consider its $240-million bid.

The Zell/Chilmark Fund on Monday pushed back to Oct. 1 the deadline for acceptance of its bid for Carter Hawley Hale Stores, giving reluctant Carter Hawley creditors more time to contemplate the offer.

The extension of the bid, which had been scheduled to expire Monday, was linked with bankruptcy court approval of a $50-million store modernization loan plus assurance that the fund will be granted the same rights as current creditors if its $240-million offer is approved.

Chicago-based Zell/Chilmark is offering 40 cents on the dollar for creditors’ claims.

It has offered to pay more to certain creditors for disputed claims with the West’s largest retailer, which began operating under federal bankruptcy protection in February.

Bondholders and creditors, according to Carter Hawley Hale records, possess more than $500 million in claims against the retailer.

Last week the unsecured creditors committee, seeking a sweetened bid, announced that “it was not in a position to recommend” the offer.

Creditors are free to decide whether to sell their claims, but if more than 20% of the creditors reject the offer, it will die, and Carter Hawley’s bankruptcy proceedings could be prolonged.

Bennett Silverman, an attorney for the creditors committee, declined to comment on the extension.

Zell/Chilmark has been the only bidder for Carter Hawley, which operates several department stores, including Southern California’s Broadway.

Carter Hawley Hale stock closed up 25 cents to $1.87 on the New York Stock Exchange.